Question

Department M had 3,000 units 59% completed in process at the beginning of June, 12,800 units completed during June, and 1,000 units 32% completed at the end of June. What was the number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories? a.11,350 units b.13,120 units c.9,800 units d.14,120 units

Answer 1

Department M

The number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories is:

a. 11,350 units

Step-by-step explanation:

Beginning work in process units = 3,000

Degree of completion = 59%

Work to be done during June on the beginning WIP = 1,230 units (3,000 * 41%)

Units started and completed during June = 9,800 Units (12,800 - 3,000)

Ending work in process, equivalent units = 320 (1,000 * 32%)

Total equivalent units of production for conversion costs for June, using the FIFO method are = 11,350 units