Question

Required information [The following information applies to the questions displayed below.] During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 60,000 were in process in the production department at the beginning of April and 240,000 were started and completed in April. April's beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of April, 82,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion. Prepare the number of equivalent units with respect to both materials used and conversion costs in the production department for April using the FIFO method. Equivalent Units of Production - FIFO Units % Materials EUP- Materials % Conversion EUP-Conversion Equivalent units of production 0 0

Answer 1

Solution

Equivalent units of production with respect to conversion-FIFO
	Units	% Material	EUP-Material	% conversion	EUP-Conversion
Units started and completed	240000	100%	240000	100%	240000
Units in ending work in process	82000	80%	65600	30%	24600
Units to complete beginning work in process	60000	40%	24000	60%	36000
Total	382000		329600		300600

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	60,000	60%	40%	40%	60%
Units introduced	322,000
Total units to be accounted for	382,000
Completed and Transferred unit	300,000	0%	0%	100%	100%
Ending WIP	82,000	0%	0%	80%	30%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	60,000	40%	24,000	60%	36,000
From units started/Introduced	240,000	100%	240,000	100%	240,000
Total	300,000		264,000		276,000
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	82,000	80%	65,600	30%	24,600
Total EUP	382,000		329,600		300,600