Daffy Corporation has two processing departments-Mixing and Cooking. Daffy uses the FIFO method. The following information relates to the Mixing Department: Mixing Department Units Percentage Complete Materials Conversion Beginning work in process inventory 200 55% 60% Units started into production during the period 3,000 Units transferred out during the period 2,600 Ending work in process inventory 600 25% 40% Knowledge Check 01 What is the number of equivalent units of production with respect to materials during the period?

Question

Jimmy Allen

Business

29 January, 11:44

Daffy Corporation has two processing departments-Mixing and Cooking. Daffy uses the FIFO method. The following information relates to the Mixing Department: Mixing Department Units Percentage Complete Materials Conversion Beginning work in process inventory 200 55% 60% Units started into production during the period 3,000 Units transferred out during the period 2,600 Ending work in process inventory 600 25% 40% Knowledge Check 01 What is the number of equivalent units of production with respect to materials during the period?

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Dax Campbell · Answer 1

The number of equivalent units of production with respect to materials during the period is $2,750 units

Explanation:

The computation of the equivalent units of production with respect to materials is shown below:

= Units transferred out during the period * percentage of completion + Ending work in process inventory units * percentage of completion

= 2,600 * 100% + 600 * 25%

= 2,600 units + 150 units

= $2,750 units

We ignored the conversion units in the computation part