g Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. The number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories was:

To apportion cost between work in progress and completed units in a particular period, we use equivalent units. Equivalents units are notional whole units which represent incomplete work and are used to apportion cost between completed units and work in progress

Equivalent Units = Degree of Completion × Units of inventory +

Another principle under this method is that only the percentage of work yet to be completed on the units of opening are done in the current period

Fully worked = newly introduced - closing inventory'

Fully worked = 14,000 - 3,000 = 11,000

Items Unit Working Equivalent units

Opening inventory 4,000 4,000× 60% 2,400

Fully worked 11,000 11,000× 100% 11,000

Closing inventory 3,000 3,000 × 75% 2250

Total equivalent unit 15,650

Total equivalent unit = 15,650