Work in process, beginning:

Units in process 900
Percent complete with respect to materials 60 %
Percent complete with respect to conversion 10 %
Costs in the beginning inventory:
Materials cost $ 600 Conversion cost $ 2,150
Units started into production during the month 14,000
Units completed and transferred out 14,500
Costs added to production during the month:
Materials cost $ 39,872
Conversion cost $ 396,630
Work in process, ending:
Units in process 400
Percent complete with respect to materials 70 %
Percent complete with respect to conversion 70 %

Using FIFO methods, determine the equivalent units of production for materials and conversion costs.

FIFO Equivalent Units   Materials =  15,320

FIFO Equivalent Units  Conversion =  15,680

Explanation:

FIFO methods,

The equivalent units of production

Materials and conversion costs.

Particulars                Units      % of Completion           Equivalent Units

                                              Materials C. Costs       Materials C. Cost

Beg WIP                900          60            10              540           90

Units Transferred  14500      100          100          14500        14500

WIP Ending        400         70%            70%           280           280

Total                14900                                             15,320       15,680

FIFO Equivalent Units   Materials =  15,320

FIFO Equivalent Units  Conversion =  15,680

In Fifo method the percentage of the worked units is calculated to find the equivalent units of production.

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