Question:
Computation of Equivalent Production.
(1) Compute the equivalent production figures for costing from the following data, using the fifo method.
(a) Started in process 40,000 units; transferred 32,000 units; in process end of period, 8,000 units, one half completed.
(b) Started in process 50,000 units; completed and transferred 36,000 units; completed and on hand 6,000 units; in process end of period, 8,000 units, three fourths completed.
(c) Started in process 15,000 units; completed and transferred 12,000 units; in process end of period, 2,000 units, three fourths completed, and 1,000 units, two fifths completed.
(d) Opening inventory 16,000 units, three eighths completed; started in process 40,000 units; transferred 36,000 units; closing inventory, 10,000 units, one half completed, and 10,000 units, three fourths completed.
(e) Opening inventory 12,000 units, one third completed, and 18,000 units, one half completed; started in process 120,000 units; transferred 128,000 units; closing inventory, 6,000 units, one fifth completed and 16,000 units, three fourths completed.
(2) Compute the equivalent production figures for costing, using the average cost method, for parts (d) and (e) above.