If 10,000 units that were 40% completed were in process on November 1, 80,000 units were completed during November, and 12,000 units were 20% completed on November 30, the number of equivalent units of production for November was 75,600.
(Assume no loss of units in production and that inventories are costed by the first-in, first-out method.)

Question

If 10,000 units that were 40% completed were in process on November 1, 80,000 units were completed during November, and 12,000 units were 20% completed on November 30, the number of equivalent units of production for November was 75,600. 
(Assume no loss of units in production and that inventories are costed by the first-in, first-out method.)​

Quizplus · Accepted Answer

The calculation for equivalent units of production should consider the completion percentage of units in process at the beginning and end of the period, as well as the units completed. For the units in process at the beginning of the month (10,000 units at 40% completed), these should not be included in the calculation under the FIFO method, as their work was considered in a previous period's calculation. Therefore, only the units completed during the month (80,000 units) and the work done on the units in process at the end of the month (12,000 units at 20% completed, which equals 2,400 equivalent units) should be considered. The correct calculation for equivalent units of production for November is 80,000 units completed + 2,400 equivalent units for the work in process at the end of the month = 82,400 equivalent units.

If 10,000 Units That Were 40% Completed Were in Process