Units: units, beginning work in process 40,000 (20% complete for materials, 60% complete for conversion) started 300,000 units, ending work in process 50,000 (25% complete for materials, 80% complete for conversion) Costs: Materials Conversion Total beginning work in process $ 6,080 $ 2,160 $ 8,240 current costs $220,875 $30,600 $251,475 total costs $226,955 $32,760 $259,715 Using FIFO what are the equivalent units for direct materials? 294500 Materials Conversion Total beginning work in process $ 6,080 $ 2,160 $ 8,240 current costs $220

Answer:

Using FIFO equivalent units for direct material = 294,500

Using FIFO equivalent unit for conversion cost 306,000

Explanation:

Computation of equivalent units of production:

Note:

(1)

Beginning work in process 20% completed for Materials and 60% completed for conversion cost i.e. remaining (100 - 20) 80% is to be completed during this period in regards with Materials and remaining (100 - 60) 40% is to be completed during this period in regards with conversion cost.

(2)

Units started during this period = 300,000

Ending inventory = 50,000 units

Hence units started and completed during this period :

300,000 - 50,000 = 250,000

(3)

Ending work in process 25% complete for Materials and 80% complete for conversion cost.

Thank you

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Please don't downvote, in this question only ask for to calculate equivalent unit of direct materials and conversion cost not ask for calculating equivalent cost per unit of direct materials and conversion cost.