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During a period, Department A finished and transferred 50,000 units to Department B. Of the 50,000 units, 20,000 were one-fifth complete with respect to direct labor at the beginning of the period and 30,000 were started and completed during the period. Also, during the period, 10,000 units were started but brought only to a stage of being htree-fifths completed. Using the FIFO inventory valuation method, the number of equivalent units produced by Department A during the period was:A. 46,000 units.B. 50,000 units.C. 52,000 units.D. 54,000 units.E. 56,000 units.

Respuesta :

TomShelby

Answer:

C. 52,000 units.

Explanation:

Using complete and transferred:

completed and transferred    50,000

ending        10,000  3/5 =         6,000

beginning   20,000 at1/5 =      (4,000)

Equivalent units                52,000

The complete and trasnferred plus the ending ivnentory is the total units during the period, then we subtract the beginning to achieve the work for the period:

Using started and transferred:

started and trasnferred               =    30,000

work on Beg WIP 20,000 x 4/5   =     16,000

Ending WIP 10 x 3/5                     =      6,000

Equivalent units                                 52,000

We start and complete 30,00 then we complete the unfinished part of the beginning WIP and we had some other units at a certain level of completion

Using Units worked during the period:

Worked During the period                  60,000

Unfinished of Ending 10,000 x 2/5 =  (4,000)

B previous work    20,000 x 1/5     =  (4,000)

Equivalent units                                 52,000

In total we work 60,000 units, a portion was already made, the beginning WIP

and a ortion was incomplete, the 2/5 of the ending WIP

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