Question

Homework: Chapter 17 Homework Save Score: 0.47 of 1 pt 2 of 5 (2 complete) HW Score: 29.33%, 1.47 of 5 pts W E17-26 (similar to) Question Help The assembly division of Walton Time Pieces, Inc. uses the FIFO method of process costing. Consider the following data for the month of May 2017: (Click the icon to view the data.) Requirement Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Enter the physical units in first, then calculate the equivalent units. Data Table Equivalent Units Direct Conversion Materials Costs Physical Units 100 Flow of Production Work in process, beginning Started during current period Conversion Costs $64,500 To account for Completed and transferred out during current period: From beginning work in process Started and completed Physical Units Direct (Watches) Materials Beginning work in process (May 1) 100 $549,300 Started in May 2017 487 Completed during May 2017 467 Ending work in process (May 31) 120 Total costs added during May 2017 $3,460,200 Degree of completion: direct materials, 95%; conversion costs, 40% Degree of completion: direct materials, 55%; conversion costs, 35%. $1,782,200 Work in process, ending Accounted for Print Done Equivalent unts of work done in current period

Answer 1

From beginning work in process - Direct material ( 100*5% = 5 units) { 5% is 100%-95%}

Conversion cost - (100 * 60%) = 60 units {60% is 100%-40%}

Work in process - Direct material (120*55%)= 66 units

Conversion cost - 120 * 35% = 42 units

Equivalent units - Direct material - 5 + 367 + 66 =438 units

Conversion units cost = 60 + 367 + 42 = 469 units