Question

Equivalent Units of Conversion Costs The Filling Department of Eve Cosmetics Company had 6,700 ounces in beginning work in process inventory (80% complete). During the period, 47,800 ounces were completed. The ending work in process inventory was 3,300 ounces (10% complete). What are the total equivalent units for conversion costs? If required, round to the nearest unit.

Answer 1

Solution

Please use both answers if one do not work because the method to be used is not stated so i had to solve using both methods.

Equivalent units using Weighted average = 48,130 Units

Equivalent units using FIFO= 42770 Units

Working

Statement of Equivalent Units(Weighted average)
						Conversion cost
	Units					Complete %	Equivalent units
Transferred	47,800					100%	47,800
Closing WIP	3,300					10%	330
Total	51,100					Total	48,130

.

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
			Conversion cost		Conversion cost
Beginning WIP	6,700		80%		20%
Units introduced	44,400
Total units to be accounted for	51,100
Completed and Transferred unit	47,800		0%		100%
Ending WIP	3,300		0%		10%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units			Conversion cost
Units Transferred:				% completed this period	Equivalent Units
From WIP	6,700			20%	1,340
From units started/Introduced	41,100			100%	41,100
Total	47,800				42,440
	Total Units			Conversion cost
Ending WIP				% completed this period	Equivalent Units
Total	3,300			10%	330
Total EUP	51,100				42,770