Question

A1 Corp. uses the FIFO method for its process costing calculations. Beginning inventory in the mixing processing center consisted of 5,000 units, 65% complete with respect to conversion costs. Ending work in process inventory consisted of 4,000 units, 50% complete with respect to conversion costs. If 19,000 units were transferred to the next processing center during the period, the equivalent units for conversion costs would be:

Answer 1

17,750 units

Step-by-step explanation:

Calculation of equivalent units for conversion costs - FIFO

To finish Opening Work in Process (5,000 units x 35%) 1,750

Started and Completed [(19,000 units - 5,000 units) x 100%] 14,000

Ending Work in Process (4,000 units x 50%) 2,000

Equivalent units of production 17,750

therefore,

the equivalent units for conversion costs would be 17,750 units