Question

E17-26 (similar to) Question Help The assembly division of Canterbury Watches, Inc. uses the FIFO method of process costing. Consider the following data for the month of May 2017: FHB (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. Physical Flow of Production Units Work in process, beginning Started during current period To account for Completed and transferred out during current period: From beginning work in process Started and completed Work in process, ending Accounted for Equivalent unts of work done in current period 0 Data Table Conversion Costs $114,350 Physical Units Direct (Watches) Materials 80 Beginning work in process (May 1) $493,360 Started in May 2017 500 Completed during May 2017 460 Ending work in process (May 31) 120 Total costs added during May 2017 $3,220,000 Degree of completion direct moteris, 90%, conversion costs, 40% Degree of completion direct materia, 60%conversion costs, 30% $1,392,000 Print Done

Answer 1

Physical Units Flow of production Work in progress, Beginning Started during current period 80 500 580 To Account for Completed and transferred out during current period Beginning work in progress Units started and completed Work in progress, Ending To Account for (460 - 80) 80 380 120 580 Equivalent units Materials Particulars Input Units Conversion Cost Equivalent Percentage Of Equivalent Units Completion Units C=A*B E=A*D Particulars Output Units Percentage Of Completion D Opening work in progress 10% - 8 60% Beginning work in progress units completed Units started and completed during this period Units Completed Units Introduced 500 380 100% 100% 380 388 380 428 460 Closing work in progress 120 60% 72 30% 36 5 80 Total 580 460 464