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At the start of the month, there were 2,000 units of work-in-progress in a factory. During
the month, 12,000 units were started. At the end of the month, 3,000 units were in closing
work in progress. The degree of completion of opening work-in-progress was 70% and
closing work-in-progress was 20%.How many equivalent units of production were achieved during the month if FIFO were
used?my working:
Units started and finished = 12,000-2,000=10,000
Closing WIP 3,000 X 20% = 600
Opening WIP 2000 X 30% = 600my answer = 10,000+600+600=11,200
I made only a mistake calculating “Units started and finished” and I don’t get it why.
their working:
Units started and finished=11,000-2000
Closing WIP 3,000 X 20% = 600
Opening WIP 2000 X 30% = 600
The answer = 10,200.thanks in advance
They started 12,000 units but 3,000 of those that were started were still WIP at the end of the month.
Therefore the number that were started and finished was 12,000 – 3,000 = 9,000.
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