Question

Required information (The following information applies to the questions displayed below.) A production department in a process manufacturing system completed its work on 80,000 units of product and transferred them to the next department during a recent period. Of these units, 24,000 were in process at the beginning of the period. The other 56,000 units were started and completed during the period. At period-end, 16,000 units were in process. Prepare the department's equivalent units of production with respect to direct materials under each of the three separate assumptions using the FIFO method for process costing, Equivalent Units of Production (EUP)-FIFO Method 1. All direct materials are added to products when processing begins. Units % Materials EUP-Materials Total 2. Beginning inventory is 40% complete as to materials and conversion costs. Ending Inventory is 75% complete as to materials and conversion costs. Units % Materials EUP-Materials

Answer 1

Solution 1:

Particulars	Units	%Material	EUP-Material
Beginning units completed this period	24000	0%	0
Units Started and Completed	56000	100%	56000
units of Ending work in process	16000	100%	16000
Equivalent units of production			72000

Solution 2:

Particulars	Units	%Material	EUP-Material
Beginning units completed this period	24000	60%	14400
Units Started and Completed	56000	100%	56000
units of Ending work in process	16000	75%	12000
Equivalent units of production			82400

Solution 3:

Particulars	Units	%Material	EUP-Material
Beginning units completed this period	24000	40%	9600
Units Started and Completed	56000	100%	56000
units of Ending work in process	16000	30%	4800
Equivalent units of production			70400