Cost Quiz's - Compute the equivalent units for materials...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Aug-16 Compute Equivalent units: FIFO Method Clean Corporation manufactures liquid window cleaner. The following information concerns its work in process: Beginning inventory, 8,000 partially complete gallons. Transferred out, 42,000 gallons. Ending inventory (materials are 10 percent complete; conversion costs are 20 percent complete). Started this month, 48,000 gallons. Assume that beginning inventory is 50 percent complete with respect to materials and 30 percent complete with respect to conversion costs.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Compute the equivalent units for materials using FIFO. Compute the equivalent units for conversion costs using FIFO. 14000 Solution: Statement of Equivalent Production Units Material Conversion cost % EU % EU Closing WIP 14000 10% 1400 20% 2800 Finished Goods - Op WIP 8000 50% 4000 70% 5600- Input 34000 100% 34000 100% 34000 Equivalent Units 39400 42400...
View Full Document

This note was uploaded on 11/22/2011 for the course COST ACCOU 101 taught by Professor Dennis during the Spring '11 term at Post.

Ask a homework question - tutors are online