Question
Using FIFO method, find equivalent units for labour for
current period only, from the following information: Opening WIP: 300 units (60% complete for labour), Units introduced: 1,200, Closing WIP: 400 units (40% complete for labour), Units completed & transferred: 1,100 units.Solution
FIFO for labour means, the opening WIP will be completed first.  ·       Completion of opening WIP = 300 × (100% − 60%) = 120 ·       Units started & completed = units completed and transferred – Opening WIP = (1,100 − 300) × 100% = 800 ·       Closing WIP = 400 × 40% = 160  Total equivalent units = 120 + 800 + 160 = 1,040
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