The Following Data Have Been Provided by Leon Corporation for the Circuit

question 24

Essay

The following data have been provided by Leon Corporation for the Circuit Prep Department.The company uses the FIFO method in its process costing. $\begin{array}{llcc} \text { Units in process, December 1: } &\\ \text { materials \( 85 \% \) complete, conversion \( 20 \% \) complete........} &900\\ \text { Units started into production during December............. } &7,100\\ \text { Units started and completed during December.............. } &5,000\\ \text { Units completed and transferred to the next department during} &\\ \text {December....................................................................... } &5,900\\ \text { Units in process, December 31: } &\\ \text {materials \( 70 \% \) complete, conversion \( 35 \% \) complete....... } &2,100\\\end{array}$
Required:
Determine the equivalent units of production for the Circuit Prep Department for December using the FIFO method.

---

Definitions:

Spreadsheet Method

A method of financial analysis or budgeting that uses a spreadsheet software to organize, calculate, and present data.

Noncash Accounts

Noncash accounts are financial accounts that track transactions not involving physical cash, such as depreciation, accruals, and allowances for doubtful accounts.

Purchase of Equipment

The acquisition of physical assets or machinery intended for use in production or operational processes.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions, deferred amounts, and changes in working capital.