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16 September, 13:51

M Company manufactures tables. At the beginning of December, the beginning work in process inventory was 300 units, which were 40% complete for conversion. 5,000 units were started in December. At the end of December, the ending work in process is 500 units, which are 50% complete for conversion. Using the FIFO process costing method, what are the December equivalent units for conversion

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  1. 16 September, 17:07
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    Answer: Equivalent units for conversion = 4870 units

    Explanation:

    Given that,

    Beginning work in process inventory = 300 units

    Beginning work in process inventory for conversion = 40% of 300 units

    = 120 units

    5,000 units were started in December.

    Ending work in process = 500 units

    Ending work in process inventory for conversion = 50% of 500 units

    = 250 units

    Units started and completed = 5000 - 500

    = 4500 units

    Equivalent units for conversion = 4870 units
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