Questions: Required information Beginning work in process: 2,000 Total units accounted for: 45,000 Equivalent units of production (EUP) - FIFO method:

Required information
Beginning work in process: 2,000
Total units accounted for: 45,000
Equivalent units of production (EUP) - FIFO method:

Transcript text: Required information \begin{tabular}{|l|r|} \hline Beginning work in process & 2,000 \\ \hline Total units accounted for & 45,000 \\ \hline Equivalent units of production (EUP) - FIFO method & \\ \hline \end{tabular}

Solution

To answer the question regarding the Equivalent Units of Production (EUP) using the FIFO method, we need to understand the context and the requirements of the problem. The FIFO method (First-In, First-Out) is used in process costing to calculate the cost of units that were started and completed during the period, as well as the cost of units that were in process at the beginning and end of the period.

Given data:

Beginning work in process: 2,000 units
Total units accounted for: 45,000 units

To calculate the Equivalent Units of Production (EUP) using the FIFO method, we need to follow these steps:

Calculate the units started and completed during the period:
- Total units accounted for: 45,000 units
- Subtract the beginning work in process: 45,000 - 2,000 = 43,000 units
Calculate the equivalent units for the beginning work in process:
- Since these units were already partially completed, we need to account for the work needed to complete them. For simplicity, let's assume the beginning work in process was 50% complete.
- Equivalent units for beginning work in process: 2,000 units * (1 - 0.50) = 1,000 units
Calculate the equivalent units for the units started and completed during the period:
- These units are fully completed, so the equivalent units are the same as the units started and completed: 43,000 units
Calculate the equivalent units for the ending work in process:
- To find the ending work in process, we need to know the total units started during the period. Assuming no additional information is provided, we can infer that the ending work in process is the difference between the total units accounted for and the units completed.
- Ending work in process: 45,000 units - 43,000 units = 2,000 units
- Assuming the ending work in process is 50% complete, the equivalent units for ending work in process: 2,000 units * 0.50 = 1,000 units
Sum the equivalent units:
- Equivalent units for beginning work in process: 1,000 units
- Equivalent units for units started and completed: 43,000 units
- Equivalent units for ending work in process: 1,000 units
- Total equivalent units of production (EUP) = 1,000 + 43,000 + 1,000 = 45,000 units