Hudson Manufacturing uses process costing. The following information was available for the current year: Number of units in beginning work-in-process inventory 5,000 (20% complete) Number of units started in the current period 60,000 Number of units in
ending work-in-process inventory 8,000 (60% complete) Required: A. If Hudson uses the first-in, first-out (FIFO) method, calculate total equivalent units for the year. B. If Hudson uses the weighted-average method, calculate total equivalent units for the year.
A. FIFO total equivalent units = 60,800
Beginning inventory (5,000 x 80%) 4,000 equivalent units
Units started and completed in the current year 52,000 equivalent units
Ending inventory (8,000 x 60%) 4,800 equivalent units
Total equivalent units 60,800 equivalent units
B. Weighted average equivalent units = 61,800
Units completed in the current year 57,000 equivalent units
Ending inventory (8,000 x 60%) 4,800 equivalent units
Total equivalent units 61,800 equivalent units
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