Question

Tip Top Painting Company has the following production data for March: Beginning work in process inventory, 2,000 units that are 30% complete for conversion costs Units completed and transferred out, 44,000 Units in ending work in process inventory, 9,000 that are 80% complete for conversion costs Materials are added only at the beginning of the process. What is the equivalent units of production during May for direct materials if the FIFO method is used?

Answer 1

Answer: 51000 units

Step-by-step explanation:

The equivalent units of production during May for direct materials if the FIFO method is used will be calculated thus:

Units completed and transferred out = 44,000 Units

Less: Beginning work in process inventory = 2,000

Balance = 42000

Then, the Equivalent units of materials will be:

Balance = 42000

Add: Units in ending work in process inventory = 9,000

Equivalent units of materials = 51,000 units