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

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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.
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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...
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