Question

Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. During the period, 14,000 units of direct materials were added at a cost of $28,700, and 15,000 units were completed. At the end of the period, 3,000 units were 75% completed. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. The number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories was:_____.a.15,650 b.14,650 c.14,150 d.14,850

Answer 1

a.15,650

Step-by-step explanation:

Calculation for the number of equivalent units of production for the period for conversion

First step is to find the Unit transferred out

Unit transferred out = 4,000 units +14,000 units-3,000 units

Unit transferred out= 15,000 units

Second step is to calculate the Equivalent unit of conversion.

Equivalent unit of conversion = (4,000*60%)+11,000+(3,000*75%)

Equivalent unit of conversion=2,400+11,000+2,250

Equivalent unit of conversion=15,650

Therefore The number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories was: 15,650