A department had 12,500 units which were 20% complete in beginning Goods in Process Inventory. During the current period 60,000 units were transferred in. Ending Goods in Process Inventory was 15,000 units which were 70% complete. Assume this company uses the FIFO method of process costing and direct material is added uniformly throughout the process. What are the equivalent units produced with respect to direct material?

Question

Quizplus · Accepted Answer

Equivalent units of production = (Beginning WIP units x % complete) + Units transferred in + (Ending WIP units x % complete)= (12,500 x 20%) + 60,000 + (15,000 x 70%)= 2,500 + 60,000 + 10,500= 65,500

A Department Had 12,500 Units Which Were 20% Complete in Beginning