Question

Required information [The following information applies to the questions displayed below.) Pacific Ink had beginning work-in-process inventory of $1,070,790 on October 1. Of this amount, $436,900 was the cost of direct materials and $633,890 was the cost of conversion. The 65,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs. During October, 136,000 units were transferred out and 47,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $3,390,200 for direct materials and $4,343,130 for conversion. the compute the equivalent units for the materials an Required: a. Compute the equivalent units for the materials and conversion cost calculations. b. Compute the cost per equivalent unit for direct materials and for conversion costs using the FIFO method. Complete this question by entering your answers in the tabs below. Required A Required B Compute the equivalent units for the materials and conversion cost calculations. Equivalent units for materials Equivalent units for conversion costs Required A Required B >

Answer 1

Units transferred out	136000
(-) Beginning inventory	65000
Units started and completed during the period	71000

Required A:
	Materials	Conversion
Units started and completed during the period	71000	71000
(+) Beginning work in process equivalent units [ Beginning work in process units * ( 100% - % Completion ) ]	45500	45500
(+) Ending work in process equivalent units [ Ending work in process units * % Completion ]	37600	18800
Equivalent units	154100	135300

Required B:
	Materials	Conversion
Cost added during the period	3390200	4343130
(/) Equivalent units	154100	135300
Cost per equivalent units	22.00	32.10