Question

Check my work Clonex Labs, Inc., uses the FIFO method in its process costing system. The following data are available for one department for October Percent Completed ials Conversion Work in process, October 1 Work in process, October 31 The department started 175,000 units Into production during the month and transferred 190,000 completed units to the next department Required: Compute the equivalent units of production for materials and conversion for October Materials Conversion Equivalent units of production

Answer 1

Equivalent units FIFO:

Material = (30,000 X 35%) + (190,000 - 30,000) + (15,000 X 80%) = 182,500

Conversion = (30,000 X 70%) + (190,000 - 30,000) + (15,000 X 40%) = 187,000

1.

Tons completed and transferred out = 20,000 + 190,000 - 30,000 = 180,000 tons

2.

Equivalent units:

Material = 180,000 + (30,000 X 60%) = 198,000

Labor and overhead = 180,000 + (30,000 X 40%) = 192,000