Question

Department A had a beginning inventory balance of 25 units which were 40% complete. During the accounting period, the department started an additional 275 units and had an ending balance of 50 units which were 20% complete. Using FIFO, the equivalent units of production is units.

Answer 1

Answer:

the equivalent units of production is 250 units

Explanation:

The computation of the equivalent units of production is units under FIFO method is shown below:

= Opening inventory balance in units + additional units - ending inventory balance units

= 25 units + 275 units - 50 units

= 250 units

hence, the equivalent units of production is 250 units

We simply applied the above formula so that the correct value could come

And, the same is to be considered