Department W had 2,580 units, one-third completed at the beginning of the period; 13,200 units were...
Department W had 2,580 units, one-third completed at the beginning of the period; 13,200 units were transferred to Department X from Department W during the period; and 1,600 units were one-half completed at the end of the period. Assume the completion ratios apply to direct materials and conversion costs.
The equivalent units of production used to compute unit conversion cost on the cost of production report for Department W, assuming the company uses FIFO, are
a.13,140 units
b.17,380 units
c.12,340 units
d.10,620 units
Homework Answers
Conversion Cost FIFO = Beginning WIP*Percent completed+Unit started and completed+Ending WIP*percent completed
= (2580*2/3+10620+1600*1/2)
Conversion Cost FIFO = 13140
So answer is a) 13140 Units
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