Question

Use this information about Department A to answer the question that follow. Department A had 4,200 units in Work in Process that were 76% completed as to labor and overhead at the beginning of the period. 31,400 units of direct materials were added during the period, 33,100 units were completed during the period, and 2,500 units were 29% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was

Answer 1

30,633 units

Step-by-step explanation:

The number of equivalent units of production for conversion costs for the period using the FIFO method is shown below:

= Beginning work in process units × remaining percentage + units started and completed units × percentage of completion + ending work in process inventory units × percentage of completion

= 4,200 units × 24% + 28,900 units × 100% + 2,500 units × 29%

= 1,008 units + 28,900 units + 725 units

= 30,633 units

The units started and completed units are come from

= 33,100 units - 4,200 units

= 28,900 units