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The following data relate to a process for last month
Opening Inventory 200 units at 70% complete
Completed output 2450 units
Closing inventory 300 units at 40 % completeWhat were the equivalent units of production last month?
I worked my answer to 2150 for total production units or is it 2210 units for total production.
Also shouldn’t the question have identified the valuation method to be used? i.e. FIFO or WACO?
What is the source of the Q? Surely there is an answer to refer to?
Total EU = Completion of op + started & finished + closing (started but not finished)
= (200 x 30%) + (2,450 – 200) + (300 x 40%) = 2,430The Q asked for the number of equivalent/effective units – you don’t need to know how those units will be subsequently valued.
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