The following information is available for the month of April from the First dep

Question

The following information is available for the month of April from the First department of the Armque Corporation:

Units Work in process, April 1 (50% complete) 90,000 Started in April 250,000 Transferred to Second Department in April 280,000 Work in process, April 30 (40% complete) 60,000

Materials are added at the end of the process in the First department. Using the first-in, first-out method, what are the equivalent units of production for the month of April?

Materials Conversion

a. 250,000 259,000

b. 340,000 259,000

c. 280,000   271,000

d. 250,000   271,000

Explanation / Answer

Physical units Materials Conversion Beginning inventory 90000 0 45000 Units started and completed 190000 190000 190000 Ending inventory 60000 60000 24000 Equivalent units 340000 250000 259000 Option A is correct

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