Question

Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. Calculate the equivalent units of materials.

Answer 1

294,000 units

Step-by-step explanation:

The computation of the equivalent units of material is shown below:

Particulars Physical unit Percentage Equivalent units

Beginning work in process 80,000 40% 32,000

Units started and completed 250,000 100% 250,000

Ending work in process 30,000 40% 12,000

Total 294,000

In the FIFO method, the beginning work in process should be considered for 40% i.e the remaining percentage i.e come from

= 100% - 60%

= 40%