Question

Question 1 :

Conlon Chemicals manufactures paint thinner. Information on the work in process follows:

• Beginning inventory, 40,400 partially complete gallons.

• Transferred out, 210,500 gallons.

• Ending inventory (materials are 21 percent complete; conversion costs are 10 percent complete).

• Started this month, 240,500 gallons.

Required:

a. Compute the equivalent units for materials using the weighted-average method.

b. Compute the equivalent units for conversion costs using the weighted-average method.

Question 2:

Conlon Chemicals manufactures paint thinner. Information on the work in process follows:

• Beginning inventory, 37,000 partially complete gallons.

• Transferred out, 211,000 gallons.

• Ending inventory (materials are 19 percent complete; conversion costs are 9 percent complete).

• Started this month, 242,000 gallons.

Assume that beginning inventory is 50 percent complete with respect to materials and 31 percent complete with respect to conversion costs

Required:

a. Compute the equivalent units for materials using FIFO.

b. Compute the equivalent units for conversion costs using FIFO.

Answer 1

• Question 1

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	210,500	100%	210,500	100%	210,500
Units of ENDING WIP [40400 + 240500 – 210500]	70,400	21%	14,784	10%	7,040
Equivalent Units of Production = ANSWERS			225,284		217,540
			Answer to Requirement [a]		Answer to requirement [b]

• Question 2

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	68,000	19.0%	12,920	9.0%	6,120
Units STARTED & COMPLETED [211000 – 37000]	174,000	100%	174,000	100%	174,000
Units of beginning WIP	37,000	50.00%	18,500	69.00%	25,530
Equivalent Units of Production = ANSWER			205,420 =Answer Requirement [a]		205,650 = Answer Requirement [b]