In applying the first-in, first-out method of costing inventories, if 8,000 units that are 30% completed are in process on June 1, 28,000 units are completed during June, and 4,000 units are 80% completed on June 30, the number of equivalent units of production for June is 28,600.

Question

Quizplus · Accepted Answer

The number of equivalent units of production for June is calculated as follows: 
- Completed units: 28,000 
- Units in ending inventory (4,000 units at 80% completion): 3,200 
- Total equivalent units of production: 28,000 + 3,200 = 31,200.

In Applying the First-In, First-Out Method of Costing Inventories, If