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Bisson Furniture uses a process cost system to account for its chair factory. Al

ID: 2504611 • Letter: B

Question

Bisson Furniture uses a process cost system to account for its chair factory. All the materials are added at the beginning of the process. Beginning inventory consisted of 5,000 units (100% complete as to material, 55% complete as to conversion) with a cost of $124,800 materials and $104,500 conversion. 58,000 units were started into production during the month with material costs of $1,357,000 and $2,124,375 of conversion costs. The ending inventory of 6,000 chairs was 100% complete as to materials and 40% complete as to conversion. Bisson uses FIFO costing.

Required: Compute the equivalent units of production for material costs.

Explanation / Answer

feedback dtarted and completed = 58,000-6,000 = 52,000

MAt EUP = 0*5000+52000+1*6000= 58,000

Conv EUP = .45*5000+52,000+.4*6000 = 56,650