Department 8 had 3,000 units in work in Process that were 25% completed at the b

Question

Department 8 had 3,000 units in work in Process that were 25% completed at the beginning of the period at a cost of $12,500. 13.700 units of direct materials were added during the period at a cost of S28,700. 15,000 units were completed during the period, and 1,700 units were 95% completed at the end of the period. Au materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18.710 The number of equivalent units of production for the period for materals·if the frst-in, first-out method is used to oost inventories was Oa. 12,000 Ob. 13,700 1,700 Od. 16,700

Explanation / Answer

Computation of equivalent units of production for the period for materials when first-in, first-out method is applied to cost inventories:

Solution: 13,700

Working: 15,000 - 3,000 +1700 = 13,700 units

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