Question

Tip Top Painting Company has the following production data for March: Beginning work in process, 2,000 units, which are 30% complete for conversion costs Units transferred out, 44,000 Units in ending work in process, 9,000, which are 80% complete for conversion costs Materials are added only at the beginning of the process. What is the equivalent units of production during May for conversion costs if the FIFO method is used? 44,400 50,600 45,200 48,800

Answer 1

Correct answer------------50,600

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed	% completed this period
	Material	Conversion	Material	Conversion
Beginning WIP	2,000	100%	30%	0%	70%
Units introduced	51,000
Total units to be accounted for	53,000
Completed and Transferred unit	44,000	0%	0%	100%	100%
Ending WIP	9,000	0%	0%	100%	80%

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STEP 2 (FIFO)
Equivalent Units
	Total Units	Material	Conversion
Units Transferred:	% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	2,000	0%	-	70%	1,400
From units started/Introduced	42,000	100%	42,000	100%	42,000
Total	44,000		42,000		43,400
	Total Units	Material	Conversion
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	9,000	100%	9,000	80%	7,200
Total EUP	53,000		51,000		50,600