Salmont Corporation uses the FIFO method in its process costing system. The company reported 42,000 equivalent units of production for materials last month. The company's beginning work in process inventory consisted of 9,500 units, 35% complete with respect to materials. The ending work in process inventory consisted of 7,500 units, 65% complete with respect to materials. The number of units started during the month was:

38,450 units  

Explanation:

The computation of the number of units started during the month is shown below:

ParticularsUnits in processPercentage of completionEquivalent units completed

Equivalent units  42,000 units  100%                              42,000 units

Less:    

Beginning work in process 9,500 units  65%              6,175 units

Ending work in process 7,500 units  65%                                4,875 units

Equivalent units for started and completed  30,950 units

Add: Ending Inventory units                                                 7,500 units

The number of units started during the month         38,450 units  

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