If 10,000 units which were 50% completed are in process at November 1, 90,000 units were completed during November, and 20,000 were 20% completed at November 30, the number of equivalent units of production for November was 90,000. (Assume no loss of units in production and that inventories are costed by the first-in, first-out method.)

Question

Quizplus · Accepted Answer

To calculate the equivalent units of production, we need to add the completed units to the percentage of partially completed units multiplied by their equivalent completed units.

For the 10,000 units that were 50% completed: 
Equivalent units = 10,000 x 50% = 5,000

For the 20,000 units that were 20% completed: 
Equivalent units = 20,000 x 20% = 4,000

Total equivalent units = 90,000 + 5,000 + 4,000 = 99,000

Therefore, the statement that the number of equivalent units of production for November was 90,000 is false.

If 10,000 Units Which Were 50% Completed Are in Process