Department R had 4,843 units in work in process that were 62% completed as to la
ID: 2565073 • Letter: D
Question
Department R had 4,843 units in work in process that were 62% completed as to labor and overhead at the beginning of the period, 31,638 units of direct materials were added during the period, 33,940 units were completed during the period, and 2,541 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. What was the number of equivalent units of production for conversion costs for the period?
Explanation / Answer
Step 1: Summarize the Flow of Physical units of output. The physical units assumed to be completed and transferred out during the period are 4843 units from beginning work-in-process inventory. 33940 physical units were completed during October. The FIFO method assumes that of these 33940 units, 29097(33940-4843) must have been started and completed during October. The ending work-in-process inventory consists of 2541 units Step 2: Compute the Output in terms of Equivalent units. (Step 1) (Step 2) Equivalent units Flow of production Physical units Direct Materials Conversion costs Wok-in-process, beginning (given) 4843 (Work done before current period) Started during current period (given) 31638 To account for 36481 Completed and transferred out during the current period: From beginning work-in-process 4843 (4843*(100%-100%); 4843*(100%-62%) 0 1840.34 Started and completed 29097 (29097*100%; 29097*100%) 29097 29097 Wok-in-process, ending (given) 2541 (2541*100%; 2541*40%) 2541 1016.4 Accounted for 36481 Equivalent units of work done in current period 31638 31953.74 Degree of completion in this department: direct materials, 100%; conversion costs, 62% (Beginning) 33940 physical units completed and transferred out minus 4843 physical units completed and transferred out from beginning work-in-process inventory. Degree of completion in this department: direct materials, 100%; conversion costs, 40% (Ending)
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