Question

Work in process, beginning:

Units in process 900
Percent complete with respect to materials 60 %
Percent complete with respect to conversion 10 %
Costs in the beginning inventory:
Materials cost $ 600 Conversion cost $ 2,150
Units started into production during the month 14,000
Units completed and transferred out 14,500
Costs added to production during the month:
Materials cost $ 39,872
Conversion cost $ 396,630
Work in process, ending:
Units in process 400
Percent complete with respect to materials 70 %
Percent complete with respect to conversion 70 %

Using FIFO methods, determine the equivalent units of production for materials and conversion costs.

Answer 1

FIFO Equivalent Units Materials = 15,320

FIFO Equivalent Units Conversion = 15,680

Step-by-step explanation:

FIFO methods,

The equivalent units of production

Materials and conversion costs.

Particulars Units % of Completion Equivalent Units

Materials C. Costs Materials C. Cost

Beg WIP 900 60 10 540 90

Units Transferred 14500 100 100 14500 14500

WIP Ending 400 70% 70% 280 280

Total 14900 15,320 15,680

FIFO Equivalent Units Materials = 15,320

FIFO Equivalent Units Conversion = 15,680

In Fifo method the percentage of the worked units is calculated to find the equivalent units of production.