Question

. A company's beginning work in process inventory consisted of 20,000 units that were one-fifth complete with respect to direct labor. These beginning units were completed and another 90,000 units were started during the current period. Of those started, 60,000 were finished and the remaining 30,000 were one-third complete at the end of the period. Using FIFO, the equivalent units of production were:A. 60,000B. 74,000C. 76,000D. 86,000E. 90,000

Answer 1

The correct answer is D. 86,000

Step-by-step explanation:

Units in production

Beginning WIP 20,000 x 4/5 = 16,000( one-fifth complete, so 4/5 to complete )

Started and completed 60,000

Ending WIP 30,000 x 1/3=10000 one-third complete

Total units 86,000