A department had 600 units which were 40% complete in beginning Goods in Process Inventory. During the current period, 7,000 units were transferred out. Ending Goods in Process Inventory was 800 units which were 40% complete. Using the FIFO method, what are the equivalent units produced if all direct material and direct labor are added uniformly throughout the process? A. 7,080B. 6,960C. 7,320D. 7,680E. 7,800

Question

Jermaine Case

Business

3 July, 15:29

A department had 600 units which were 40% complete in beginning Goods in Process Inventory. During the current period, 7,000 units were transferred out. Ending Goods in Process Inventory was 800 units which were 40% complete. Using the FIFO method, what are the equivalent units produced if all direct material and direct labor are added uniformly throughout the process? A. 7,080B. 6,960C. 7,320D. 7,680E. 7,800

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Felix Steele · Answer 1

The equivalent units produced is 7080

Explanation:

To get the units produced in this period we must add the part missing at the beginning to complete them + units transferred out + ending beginning

To complete the units at the beginning, wwe have to produce 60% of 600 units

600 x 60% = 360

7,000 units were transferred out (we have 600 from the beginning, so we have to produce 7000-600=6400

Al the end, we have 800 at 40% = 320

Adding the 3 items

UP=360+6400+320=7080