If beginning inventory contained 2,000 units of product that were judged to be 40 per cent complete as to labour, the equivalent units of production for labour during the current period under the FIFO method for these 2,000 units are
A)2,000 units.
B)800 units.
C)1,200 units.
D)400 units.

Question

Quizplus · Accepted Answer

The equivalent units of production for labour are calculated by multiplying the number of units by the percentage complete for labour. 
For the beginning inventory: 
2,000 units x 40% complete = 800 equivalent units 
Therefore, the total equivalent units of production for labour would be 800 units for the beginning inventory.

If Beginning Inventory Contained 2,000 Units of Product That Were