Question

Department Z had 4,300 units in work in process that were 61% completed as to labor and overhead at the beginning of the period; 31,300 units of direct materials were added during the period; 33,000 units were completed during the period; and 2,600 units were 26% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was?

Please explain steps

Answer 1

The number of equivalent units of production for conversion costs for the period was 31,053 units

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed	% completed this period
		Conversion		Conversion
Beginning WIP	4,300		61%		39%
Units introduced	31,300
Total units to be accounted for	35,600
Completed and Transferred unit	33,000		0%		100%
Ending WIP	2,600		0%		26%

..

STEP 2 (FIFO)
Equivalent Units
	Total Units		Conversion
Units Transferred:			% completed this period	Equivalent Units
From WIP	4,300			39%	1,677
From units started/Introduced	28,700			100%	28,700
Total	33,000				30,377
	Total Units		Conversion
Ending WIP				% completed this period	Equivalent Units
Total	2,600			26%	676
Total EUP	35,600				31,053