Question

Question 3

Below is information about ABC Ltd., a chemical producer, for the month of June:

Question 3 Below is information about ABC Ltd., a chemical producer, for the month of June: 24,900 units Work in process, beginning inventory Transferred-in units-100% complete Direct materials-0% complete Conversion costs-80% complete Transferred in during June Completed and transferred out during June Work in process, ending inventory Transferred-in units-100% complete Direct materials-0% complete Conversion costs-40% complete 178,600 units 175,100 units ? units How many units are in ending work in process inventory? Units in ending work in process LINK TO TEXT LINK TO TEXT Under FIFO, what are the equivalent units of production for the month of June for materials? Equivalent units of production for materials LINK TO TEXT LINK TO TEXT Under FIFO, what are the equivalent units of production for the month of June for conversion costs? Equivalent units of production for conversion costs

Answer 1

Units in ending Work in process = 28,400 units

	Equivalent Units of Production
Material	175,100
Conversion	166,540

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed	% completed this period
	Material	Conversion	Material	Conversion
Beginning WIP	24,900	0%	80%	100%	20%
Units introduced	178,600
Total units to be accounted for	203,500
Completed and Transferred unit	175,100	0%	0%	100%	100%
Ending WIP	28,400	0%	0%	0%	40%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material	Conversion
Units Transferred:	% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	24,900	100%	24,900	20%	4,980
From units started/Introduced	150,200	100%	150,200	100%	150,200
Total	175,100		175,100		155,180
	Total Units	Material	Conversion
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	28,400	0%	-	40%	11,360
Total EUP	203,500		175,100		166,540