Question

East Bay Fisheries Inc. processes king salmon for various distributors. Two departments are involved — processing and packaging. Data relating to tons of king salmon processed in the processing department during June 2019 are provided below:

	Tons of King Salmon	Percent Completed
		Materials	Conversion
Work-in-process inventory — June 1	3,300	86	89
Work-in-process inventory — June 30	4,600	69	50
Started processing during June	9,500

Total equivalent units for materials under the FIFO method are calculated to be:

Answer 1

Solution

	Material	Conversion
Equivalent Units of Production	8,536	7,563

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	3,300	86%	89%	14%	11%
Units introduced	9,500
Total units to be accounted for	12,800
Completed and Transferred unit	8,200	0%	0%	100%	100%
Ending WIP	4,600	0%	0%	69%	50%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	3,300	14%	462	11%	363
From units started/Introduced	4,900	100%	4,900	100%	4,900
Total	8,200		5,362		5,263
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	4,600	69%	3,174	50%	2,300
Total EUP	12,800		8,536		7,563