Question

It takes two materials to produce our widgets, Material X and Material Y. All of Material X is added at the beginning of processing, and all of Material Y is added at the 30% point in processing. At the beginning of March, there were 8000 units in Work in Process, 20% complete as to processing (Conversion). During March, there were 30000 units started into the process. At the end of March, there were 5000 units in Work in Process, 70% complete as to processing, Our Company uses the FIFO method of process costing. Prepare an equivalent units chart for the month of March

In April, we started 40000 units and completed 39000 units. The ending Work in process for April was 10% complete as to processing. Prepare an equivalent units chart for April.

Answer 1

• Equivalent units for March

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	5,000	100.0%	5,000	70.0%	3,500
Units STARTED & COMPLETED	25,000	100%	25,000	100%	25,000
Units of beginning WIP	8,000	0.00%	-	80%	6,400
Equivalent Units of Production			30,000		34,900

• Equivalent units for April

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	6,000	100.0%	6,000	10.0%	600
Units STARTED & COMPLETED	34,000	100%	34,000	100%	34,000
Units of beginning WIP	5,000	0.00%	-	30%	1,500
Equivalent Units of Production			40,000		36,100