Question

Richards Corporation uses the FIFO method of process costing. The following information is available for October in it's fabricating department: Units: Beginning inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion. Units started and completed: 250,000 Units completed and transferred out: 330,000 Ending inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion Costs: Costs in beginning Work in Process - direct materials: $37,200 Costs in beginning Work in process - conversion: $79,700 Costs incurred in October - Direct materials: $646,800 Costs incurred in October: Conversion: $919,300 Calculate the equivalent units of conversion. A. 250,000 B. 317,000 C. 294,000 D. 333,000 E. 342,000

Answer 1

B. 317,000

Step-by-step explanation:

Statement of Equivalent production

Particulars Conversion % Completion Equivalent Conversion

Opening WIP 80,000 80% 64,000

Units started & 250,000 100% 250,000

completed

Ending WIP 30,000 10% 3,000

Equivalent Units 317,000