Rivera Salad Dressing had 16,000 units (one unit equals one case) in beginning inventory, 30% complete with respect to both materials and to conversion costs. During November, 34,000 units were transferred out, 1,000 were spoiled and 9,000 remained in ending inventory. The spoiled units were 50% complete for conversion costs and 100% complete for materials. The ending work-in-process was 70% complete for conversion costs and 60% complete as to direct materials. Rivera accounts for spoiled units separately and does not spread their cost over good units produced. Assume that spoilage came proportionately from current and prior work.
Required: Calculate the finished equivalent units for November, assuming the company separately identifies spoiled units and uses FIFO.

Question

Quizplus · Accepted Answer

The Answer of Rivera Salad Dressing had 16,000 units (one unit equals one case) in beginning inventory, 30% complete with respect to both materials and to conversion costs. During November, 34,000 units were transferred out, 1,000 were spoiled and 9,000 remained in ending inventory. The spoiled units were 50% complete for conversion costs and 100% complete for materials. The ending work-in-process was 70% complete for conversion costs and 60% complete as to direct materials. Rivera accounts for spoiled units separately and does not spread their cost over good units produced. Assume that spoilage came proportionately from current and prior work.
Required: Calculate the finished equivalent units for November, assuming the company separately identifies spoiled units and uses FIFO.

Rivera Salad Dressing Had 16,000 Units (One Unit Equals One