Solis Company uses the FIFO method to compute equivalent units. It has 6,000 units in beginning...

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Solis Company uses the FIFO method to compute equivalent units. It has 6,000 units in beginning work in process, 40% complete

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Answer 1

Answer #1

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Good units completed and transferredout

= (6,000 + 64,000) - 4,000 = 66,000

Out of this 66,000 good units 6,000 is from beginning work in process, balance is 60,000 units (66,000 - 6,000).

1 EQUIVALENT UNIT OF CONVERSION COST UNDER FIFO

Equivalent unit of conversion cost

= (6,000 × 60%) + 60,000 + (4,000 × 30%) = 64,800 units

Equivalent unit under FIFO is 64,800 units in conversion cost.

CORRECT option is 64,800

2 EQUIVALENT UNIT OF MATERIAL UNDER FIFO

Equivalent unit of material

= (6,000 × 20%) + 60,000 + (4,000 × 80%) = 64,400 units

64,400 units is equivalent unit of material under FIFO.

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Solis Company uses the FIFO method to compute equivalent units. It has 6,000 units in beginning...

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