In: Accounting
The following information is available:
Units in process at the beginning of the month |
2,000 |
Units in process at the end of the month |
4,000 |
Units started during the month |
30,000 |
Materials are added at the beginning of the process.
10a. Refer to the information above. Beginning and ending units were 60 percent complete as to conversion costs. What is the number of units started and completed? (Ans: $26,000)
10b. Refer to the information above. Beginning and ending units were 60 percent converted. How many equivalent units for materials would there be using the FIFO method? (Ans: 30,000)
10c. Refer to the information above. Beginning and ending units were 60 percent converted. How many equivalent units for conversion costs would there be using the FIFO method? (Ans: 29,200)
I know the answers I just need detailed step-by-step instructions.
Q10A = number of units started and completed = 30,000 - 4,000 | 26,000.00 | |||||
Q10b =equivalent units for materials | 30,000.00 | |||||
Q10 cequivalent units for conversion costs | 29,200.00 | |||||
Statement of Equivalent production | ||||||
Particulars | Materials | %completion | Equivalent Materials | Conversion | %completion | Equivalent Conversion |
Opening WIP | 2,000.00 | 0% | - | 2,000.00 | 40% | 800.00 |
Units started and completed = 30,000-4000 | 26,000.00 | 100% | 26,000.00 | 26,000.00 | 100% | 26,000.00 |
ending WIP | 4,000.00 | 100% | 4,000.00 | 4,000.00 | 60% | 2,400.00 |
Equivalent Units | 30,000.00 | 29,200.00 | ||||