Question

At the beginning of the month, the Forming Department of Martin Manufacturing had 14,000 units in inventory, 40% complete as to materials, and 20% complete as to conversion. During the month the department started 68,000 units and transferred 70,000 units to the next manufacturing department. At the end of the month, the department had 12,000 units in inventory, 85% complete as to materials and 60% complete as to conversion. If Martin Manufacturing uses the FIFO method of process costing, compute the equivalent units for materials and conversion respectively for the Forming Department.

Answer 1

The equivalent units for materials and conversion are 74,600 and 74,400 respectively for the Forming Department.

Step-by-step explanation:

Equivalent unit of material

= 14000 x 60% + 56000 x 100% + 12000 x 85%

= 74600

Equivalent unit of conversion

= 14000 x 80% + 56000 x 100% + 12000 x 60%

= 74400