If 10,000 units which were 40% completed are in process at November 1, 80,000 units were completed during November, and 12,000 were 20% completed at November 30, the number of equivalent units of production for November was 75,600. (Assume no loss of units in production and that inventories are costed by the first-in, first-out method.)

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The equivalent units of production for November should be calculated considering the work done on beginning inventory, units started and completed, and ending inventory. The calculation does not result in 75,600 equivalent units.

If 10,000 Units Which Were 40% Completed Are in Process