Answer:
Total equivalent unit = 1,242 + 9,600 + 290 = 11,132 units
Explanation:
Explanation:
Equivalent units are used to apportion cost between completed units and work in progress. They represent notional whole units which represent incomplete work.
Under the first in first method , to account for completed units during a production period the opening inventory units are assumed to completed first before newly the newly introduced units.
So we can work out the equivalents units as follows:
Fully worked units :These represent units started this period of production and completed in the same period.
Fully worked= 12300 - 2700=9600
Item Workings Equivalent unit
Opening inventory (100-54)% × 2,700 = 1,242
Fully worked (100% × 9600 ) = 9,600
Closing inventory ( 29% × 1000) = 290
Total equivalent units 11,132
Total equivalent unit = 1,242 + 9,600 + 290 = 11,132 units
Note that for the opening inventory already 54% work has been done the preceding period , so the balance of 46% would be done in this current period.
