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The following data relate to a process for last month:
Opening inventory = 200 units (70% complete)
Completed output = 2,450 units
Closing inventory= 300 units (40% complete)What were the equivalent units of production last month?
In the question, it doesn’t say FIFO or weighted method. so I just do this
op I= 200*70%=140
cl I= 300*40%= 120
.. don’t answer should be 200+2450+120=2710 ?Since the question does not ask for any costings – just for the equivalent units of production – it is irrelevant whether it is FIFO or weighted average.
Finishing the opening WIP is 30% x 200 units = 60 equivalent units.
Completed from start to finish are 2,450 = 200 = 2,250 units.
Starting the closing WIP is 40% x 300 = 120 equivalent units.
Therefore in total, the equivalent units are production are 60 + 2,250 + 120 = 2,430 units.
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