The following production data were taken from the records of the Finishing Depar
ID: 2372208 • Letter: T
Question
The following production data were taken from the records of the Finishing Department for June:
Inventory in process, 6-1 (30% completed ) 4,000 units
Completed units during June 71,000 units
Ending inventory (60% completed) 7,000 units
Determine the number of material equivalent units of production in the June 30 Finishing Department inventory, assuming that the firstin,
first-out method is used to cost inventories and materials were added at the beginning of the process
a. 6,700 units
b. 78,000 units
c. 74,000 units
d. 82,000 units
THANK YOU!
Explanation / Answer
Answer :- Option c). 74,000 units.
Explanation :- Material equivalent units of production = Completed units + Ending inventory units - Beginning inventory units.
= 71000 + 7000 - 4000
= $ 74,000 units. (Option c).
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