Question

X processes widgets. Two departments are involved — processing and packaging. Data relating to widgets processed in the processing department during June 20XX are provided below:

	# widgets	completion direct materials	percentage conversion costs
Beginning Work-in-Progress - June 1	1,500	90%	80%
Starting during June	7,800
Ending Work-in-process - June 30	2,800	60%	40%

a) What are equivalent units for direct materials using the weighted average method?

b) What are equivalent units for conversion costs using the weighted average method?

c) What are equivalent units for direct materials using the FIFO method?

d) What are equivalent units for conversion costs using the FIFO method?

Answer 1

(a&b)

Weighted Average
UNITS TO ACCOUNT FOR:
Beginning Work in Process units	1,500
Add: Units Started in Process	7,800
Total Units to account for:	9,300
UNITS TO BE ACCOUNTED FOR:
Units started and completed	6,500
Ending Work in Process	2,800
Total Units to be accounted for:	9,300

			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units started and completed			100%	6,500	100%	6,500
Ending Work in Process			60%	1,680	40%	1,120
Total Equivalent units				8,180		7,620

(c &d)

FIFO
UNITS TO ACCOUNT FOR:
Beginning Work in Process units	1,500
Add: Units Started in Process	7,800
Total Units to account for:	9,300
UNITS TO BE ACCOUNTED FOR:
Units completed from Beginning WIP	1500
Units started and completed	5,000
Ending Work in Process	2,800
Total Units to be accounted for:	9,300

			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units completed from Beg. WIP			10%	150	20%	300
Units started and completed			100%	5,000	100%	5,000
Ending Work in Process			60%	1,680	40%	1,120
Total Equivalent units				6,830		6,420