Question

A company uses the FIFO method for inventory costing. During a period, a production department had 56,000 units in beginning goods in process inventory which were 32% complete; the department completed and transferred 167,000 units. At the end of the period, 14,000 units were in the ending goods in process inventory and are 67% complete.

Compute the number of equivalent units produced by the department.

a. 181,000
b. 158,460
c. 167,000
d. 176,380
e. 111,000

Answer 1

Answer:

158460 ( B )

Explanation:

Given data :

production department ; 56000 units

process inventory = 32% = 0.32

completed and transferred units = 167000

ending goods units = 14000,      67% complete = 0.67

attached below is the table representation of the solution

The number of equivalent units produced by the department

= ∑ all the variables listed on the table

= 38080 + 11100 + 9380 = 158460