he following production data were taken from the records of the finishing depart

Question

he following production data were taken from the records of the finishing department for June:

Determine the number of equivalent units of production in the June 30, finishing department inventory, assuming that the first-in, first-out method is used to cost inventories. The completion percentage of 25% applies to both direct materials and conversion costs.

300 units

1,000 units

200 units

575 units

Inventory in process, June 1, 25% completed 1,500 units Transferred to finished goods during June 5,000 units Equivalent units of production during June 5,200 units

Explanation / Answer

575 units Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent mat Opening WIP                1,500.00 75%                    1,125.00                1,500.00 75%                    1,125.00 Units started and completed(5000-1500)                3,500.00 100%                    3,500.00                3,500.00 100%                    3,500.00 Closing WIP 25%                                 -   25%                                 -   Equivalent Units                    4,625.00                    4,625.00 Closing WIP Equivalent Units + 4625 = 5200 Closing WIP Equivalent Units = 5200 - 4625 Closing WIP Equivalent Units = 575

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