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a company in continuous production, which implements the FIFO method, provides the following data. The initial...

a company in continuous production, which implements the FIFO method, provides the following data. The initial cost of inventory is $ 16,000 and the cost of the period is $ 54,000. inventory at the beginning 600 pieces and has absorbed 75% of the costs, unit produced 2000 pieces and inventory at the end 3200 pieces. Equivalent units are 2200 pieces. Find the percentage of inventory cost absorption at the end.

a. 29.2% b. 20.3% c. 27.4% d. 25.6%

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A B C=A*B
A Company Whole Units Conversion % Equivalent Units Note
Total Equivalent Units               2,200.00
Less:
Opening Inventory           600.00 25%                   150.00
Units completed and finished in same month       1,400.00 100%               1,400.00
Ending Inventory- Equivalent Units                   650.00 D
Ending Inventory- Whole Units               3,200.00 E
Percentage of inventory cost absorption at the end 20.3% F=D/E

ekkarill92 answered 2 years ago
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