Question

The following production data were taken from the records of the Finishing Department for June:

Inventory in process, June 1 (39% completed)	4,100	units
Completed units during June	64,700	units
Ending inventory (63% complete)	3,500	units

The number of materials equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories and materials were added at the beginning of the process, is

a.64,100 units

b.3,500 units

c.60,600 units

d.68,200 units

Answer 1

Correct answer-----------(a) 64,100 units

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	4,100	100%	39%	0%	61%
Units introduced	64,100
Total units to be accounted for	68,200
Completed and Transferred unit	64,700	0%	0%	100%	100%
Ending WIP	3,500	0%	0%	100%	63%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	4,100	0%	-	61%	2,501
From units started/Introduced	60,600	100%	60,600	100%	60,600
Total	64,700		60,600		63,101
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	3,500	100%	3,500	63%	2,205
Total EUP	68,200		64,100		65,306