A Company uses FIFO method in its process costing system. The beginning WIP inve

Question

A Company uses FIFO method in its process costing system. The beginning WIP inventory in a particular department consisted of 8,700 units, two-thirds complete with respect to conversion costs. During the month, 59,000 units were started and 57,000 units were completed and transferred out of the department. The company had 57,000 equivalent units for conversion costs. The ending work in process inventory in the department consisted of? How many units at what percent with respect to conversion costs or zero units?

Explanation / Answer

Beg Invty                               8,700               66.67%
Started                                59,000
To be accounted for            67,700

Completed                           57,000           8,700 x 33.33%= 2,900
                                                          (57,000-8,700) X 100% = 48,300 = 51,200
Ending Invty                       10,700
Accounted for                     67,700
Therefore: Since equivalent units(given) is 57,000, (57,000-51,200 = 5,800), whereby 5,800 divided by the ending inventory 10,700 = 54%

answer: 10,700 ending   54% percent conversion costs

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.