Answered Essay: Department M had 2,600 units 52% completed in process at the beginning of June, 12,000 units

Department M had 2,600 units 52% completed in process at the beginning of June, 12,000 units completed during June, and 900 units 26% completed at the end of June. What was the number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories?

10,882

9,400

12,234

13,134

Expert Answer

 

Number of equivalent units=(Beginnning inventory*Completion in the month of June)+Units started, completed during June+(Ending inventory*Completion in the month of June)

=(2600 units(1-0.52))+(12000 units-2600units)+(900*26%)(Units totally completed =12000 out of which 2600 were included in the beginning of June)

=(1248+9400+234)

=10882 units(A).

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