BEC Question: would appreciate help solving

  • Creator
    Topic
  • #1316878
    jairvin3
    Participant

    During the current year, the following manufacturing activity too place for a company’s products:
    • Beginning work in process” 10,000 units, 70% complete
    • Units started into production during the year: 150,000 units
    • Units completed during the year: 140,000 units
    • Ending work in process: 20,000 units, 25% complete

    What was the number of equivalent units produced using the First-In, First-Out method?
    A. 138,000
    B. 140,000
    C. 145,000
    D. 150,000

    Wiley says correct answer is A: 138,000 Based on the following calculation:

    No Matter which way I calculate this question I cannot get to the answer that Wiley says is correct. Could somebody please show step by step how this problem is to be calculated out?

    Thanks

Viewing 3 replies - 1 through 3 (of 3 total)
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  • #1316899
    FARISFUN
    Participant

    FIFO you use the three step method

    1.) Beg. WIP * % to be completed= 10,000*30%= 3,000

    2.) Unites completed- Beg Wip= 140,000-10,000= 130,000

    3.) End Inventory * % complete= 20,000*25%= 5,000

    Add them all together and you get 138,000.

    The weighted average method only uses two steps.

    1.) units completed

    2.) ending inventory* % completed.

    Add the two together for equivalent units

    #1316965
    jairvin3
    Participant

    Thank you very much

    #1317050
    Itz_Theshznt
    Participant

    During the current year, the following manufacturing activity too place for a company’s products:
    • Beginning work in process” 10,000 units, 70% complete
    • Units started into production during the year: 150,000 units
    • Units completed during the year: 140,000 units
    • Ending work in process: 20,000 units, 25% complete

    What was the number of equivalent units produced using the First-In, First-Out method?
    A. 138,000
    B. 140,000
    C. 145,000
    D. 150,000

      First-In-First-Out

    3 Steps
    Step 1) Beginning WIP x % to be completed (take the INVERSE of the 70% completed — the way the write it can be misleading)

    Step 2) Units completed – Beginning WIP (the OVERALL figure)

    Step 3) Ending WIP x % of Completed units (This time you use the exact figures)

    So to put into a formula:
    Step 1: 10,000 X 30% = 3,000 units
    Step 2: 140,000 – 10,000 = 130,000 units
    Step 3: 20,000 x 25% = 5,000 units
    Equivalent units = 138,000 units

    Hope that helps! Remember, the percentages are tricky.

Viewing 3 replies - 1 through 3 (of 3 total)
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