Required Information Use the following information for the Exercises below. The

Question

Required Information Use the following information for the Exercises below. The following information applies to the questions displayed below During April, the production department of a process menufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 60.000 were in process in the production department at the beginning of April and 240,000 were started and completed in April Arrs beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of April, 82.000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion Exercise 20-10A FIFO: Computing equivalent units of production LO C4 Prepare the number of equivalent units with respect to both materials used and conversion costs in the production department for April using the FIFO method Equivalent unts of production re to search

Explanation / Answer

Calculation of no. of equivalent units wit respect to both material and converion cost using FIFO:

40%

(100% - 60%)

60%

(100% - 40%)

Where, EUP = Equivalent units of production

WIP = Work in Process

Equialent units of production Units % materials EUP - Materials % Conversions EUP - Conversions Opening WIP introduced and completed 60,000

40%

(100% - 60%)

24,000

60%

(100% - 40%)

36,000 Introduced in April anc completed 240,000 100% 240,000 100% 240,000 Closing WIP 82,000 80% 65,600 30% 24,600 Equivalent units of production 382,000 329,600 300,600

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