Question

Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below) A production department in a process manufacturing system completed its work on 76,000 units of product and transferred them to the next department during a recent period. Of these units, 30,400 were in process at the beginning of the period. The other 45,600 units were started and completed during the period. At period-end, 17,300 units were in process Exercise 16-5A FIFO: Computing equivalent units LO C4 Prepare the department's equivalent units of production with respect to direct materials under each of the three separate assumptions using the FIFO method for process costing. rences Equivalent Units of Production (BUP) FIFO Method 1. All direct materials are added to products when processing begins Units % Materials EUP Materiale Total 2. Beginning inventory is 30% complete as to materials and conversion costs. Ending inventory is 75% complete as to materials and conversion costs. Units * Materials EUP-Materials 2. Beginning inventory is complete as to materials and complete as te conversion conding inventory in 20% completo as to materials and 70% complete to conversion

Answer 1

Answer

· Workings

Units Reconciliation
Units to account for:
Beginning WIP	30,400
Units started this period	62,900
Total Units to account for	93,300
Total Units accounted for:
Completed & Transferred out	76,000
Ending WIP	17,300
Total Units accounted for	93,300

· [1]

EUP - FIFO Method	Units	% Material	EUP Materials
Units of ENDING WIP	17,300	100.0%	17,300
Units STARTED & COMPLETED	45,600	100%	45,600
Units of beginning WIP	30,400	0.00%	-
Equivalent Units of Production			62,900

· [2]

EUP - FIFO Method	Units	% Material	EUP Materials
Units of ENDING WIP	17,300	75.0%	12,975
Units STARTED & COMPLETED	45,600	100%	45,600
Units of beginning WIP	30,400	70.00%	21,280
Equivalent Units of Production			79,855

· [3]

EUP - FIFO Method	Units	% Material	EUP Materials
Units of ENDING WIP	17,300	20.0%	3,460
Units STARTED & COMPLETED	45,600	100%	45,600
Units of beginning WIP	30,400	30.00%	9,120
Equivalent Units of Production			58,180