In a chemical processing unit, materials are added at the beginning of the process. During the month, the department reported 9,200 equivalent units…

CA Intermediate · Cost and Management Accounting · RTP · May 2026
In a chemical processing unit, materials are added at the beginning of the process. During the month, the department reported 9,200 equivalent units of production (EUP) under the FIFO method. The process had an opening WIP of 800 units, which were 50% complete, and a closing WIP of 900 units, which were 70% complete with respect to conversion costs. During the month, the plant also faced a minor machine breakdown, but it did not affect the material input, only the processing speed. Based on the above information, the number of units completed during the month was:
(A) 9,100
(B) 8,970
(C) 8,450
(D) 8,650

Suggested Answer and Working Notes:

Correct Answer: Option (B)

8,970

Topics: Material Cost, Process & Operation Costing

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