The following production data were taken from the records of the finishing depar

Question

The following production data were taken from the records of the finishing department for bune: Inventory in process, June 1, 25% completed Transferred to finished goods during June Equivalent units of production during June Determine the number of equlvalent units of production in the June 30, finishi The completion percentage of 25% applies to both direct materials and conversion costs a. 480 units b. 900 units 460 units 5,300 units 5,785 units of production in the June 30, frishing department Inventony, assuming that the frst-in, irat-out method is used to cost inventortes. c. 600 units d. 720 units

Explanation / Answer

Solution:

From the given data we need to find the number of equivalent units of production june 30

The number of equivalent units of production = (Equivalent units of production during - Transfered to finished goods during) + Inventory in process

Now,

We write the given information as follows;

A =Equivalent units of production during june = 5,785 units

B =Transferred to finished goods during june = 5,300 units

C = Opening Inventory in process 25% of 460 units = 115 units

Then,

Equivalent units of production in june 30 (A - B + C) =

= (5,785 - 5,300 + 115)

= 600 units

So, the correct answer is option c 600 units.

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