Question

In: Accounting

The following information is available: Units in process at the beginning of the month 2,000 Units...

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.

Solutions

Expert Solution

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

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