A company's beginning work in process inventory consisted of 20,000 units that were 1/5 complete with respect to direct labor. These beginning units were completed and another 90,000 units were started during the current period. Of those started, 60,000 were finished and the remaining 30,000 were 1/3 complete at the end of the period. Using FIFO, the equivalent units of production were:

Question

Quizplus · Accepted Answer

The equivalent units of production using FIFO method is calculated as follows:

Units started and completed during the period: 60,000
Units in ending WIP inventory (1/3 complete): (30,000 x 1/3) = 10,000
Units in beginning WIP inventory (1/5 complete): (20,000 x 1/5) = 4,000

Total equivalent units of production = 60,000 + 10,000 + 4,000 = 74,000

Therefore, the best choice is D, which is 86,000. None of the answer choices match our calculation.

A Company's Beginning Work in Process Inventory Consisted of 20,000