In applying the first-in, first-out method of costing inventories, if 8,000 units that are 30% completed are in process on june 1, 28,000 units are completed during june, and 4,000 units are 80% completed on june 30, the number of equivalent units of production for june is 28,600.a. true. b.false.

The FIFO method (first-in, first-out) considerate the amount of processing at the beginning and the end of the period. This two moments are converted in equivalent units as it follows:

On June 1, the 30% of 8000 units are completed: 0.30(8000) = 2400 completed units.

During June, 28,000 units are completed.

On June 30, the 80% of 4000 units are completed: 0.80(4000) = 3200 units completed. But these units are remaining from June 1. So, the actual amount of equivalent units from June 1 and June 30 is 3200 - 2400 = 800 units.

Then, we some the total of equivalent units of production 28000 + 800 = 28800.

Therefore, the answer is false, because is more than 28600.