Question

Help Save & En Check During April, the first production department of a process manufacturing system completed its work on 345,000 units of a product and transferred them to the next department. Of these transferred units, 69,000 were in process in the production department at the beginning of April and 276,000 were started and completed in April. April's beginning inventory units were 80% complete with respect to materials and 20% complete with respect to conversion. At the end of April, 91,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion Exercise 16-10A FIFO: Computing equivalent units of production LO C4 Prepare the number of equivalent units with respect to both materials and conversion costs in the production department for April using the FIFO method EUP. Conversion Equivalent Units of Production - FIFO Units % Materials EUP. Materials Conversion Equivalent units of production Next > 5 of 6 !!!

Answer 1

Statement of Equivalent Units of Production as per FIFO Method

Particulars	Units	% Materials	EUP Materials	% Conversion	EUP Conversion
Units Transferred from BeginningWork in Process	69,000	20%	13,800	80%	55,200
Units Transferred Out of Current Process	276,000	100%	276,000	100%	276,000
Ending Work in Process	91,000	80%	72,800	30%	27,300
Equivalent Annual Units of Production	436,000		362,600		358,500

Notes

EUP stands for Equivalent Units of Production

Materials

EUP Materials = Units * % Materials Conversion

For Beginning Work in Process Completion done in April is 20% only as they were 80% Completed in previous Month

For Units Transferred Out of Current Process are 100% completed in this month.

For Units in Ending Inventory only 80% Completed.

For Conversion

EUP Conversion = Units * % Conversion

For Beginning Work in Process Completion done in April is 80% only as they were 20% Completed in previous Month

Units Transferred Out from Current Month are 100% completed in April.

Units in Ending Inventory are only 30% complete with respect to conversion Costs.