Question

In: Accounting

If the opening inventory of Gumede Limited contained 2 000 units of their product that were...

If the opening inventory of Gumede Limited contained 2 000 units of their product that were judged to be 40% complete as to labour, the equivalent units of production for labour for the current period under the first-in-first-out (FIFO) method for these 2 000 units are: (2)

a. 2 000 units

b. 800 units

c. 1 200 units

d. 400 units

Solutions

Expert Solution

The opening inventory of Gumede Limited contained 2000 units that were judged to be 40% complete as to labour.

The equivalent units of of production for labour in the opening balance

= 2000 X 40 %

= 800 Units

Therefore the equilvalent units of production for labour for current period to complete these 2000 units :

= 2000 units - 40% already completed

= 2000 units - 800 units

= 1200 units

ekkarill92 answered 2 years ago
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