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Department R had 4,900 units in work in process that were 63% completed as to labor...

Department R had 4,900 units in work in process that were 63% completed as to labor and overhead at the beginning of the period. During the period, 37,300 units of direct materials were added, 40,100 units were completed, and 2,100 units were 37% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was

a.37,790

b.42,690

c.47,100

d.40,100

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Answer #1

Answer:

Option a) is correct. i.e 37,790 units

CALCULATE NO OF EQUIVALENT UNIT OF PRODUCTION FOR CONVERSION COST UNDER FIFO METHOD :
WHOLE UNIT % EQUIVALENT UNIT
BEGINNING WIP                                             4,900 37%                                1,813
UNIT STARTED & COMPLETED(40100-4900)                                           35,200 100%                             35,200
ENDING WIP                                             2,100 37%                                   777
TOTAL                             37,790
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