If Department H had 600 units, 60% completed, in process at the beginning of the period, 8,000 units were completed during the period, and 500 units were 30% completed at the end of the period, what was the number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories? Assume the completion percentage applies to both direct materials and conversion cost.
A) 7,790
B) 8,390
C) 8,600
D) 8,000

Question

Quizplus · Accepted Answer

The number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories is 7,790. This is calculated as follows:Beginning work in process: 600 units x 60% = 360 equivalent unitsUnits started and completed during the period: 8,000 unitsEnding work in process: 500 units x 30% = 150 equivalent unitsTotal equivalent units of production: 360 + 8,000 + 150 = 7,790

If Department H Had 600 Units, 60% Completed, in Process