Clonex Labs, Inc., uses the FIFO method in its process costing system. The following data are available for one department for October: Percent Completed Units Materials Conversion Work in process, October 1 27,000 57 % 33 % Work in process, October 31 20,000 81 % 41 % The department started 176,000 units into production during the month and transferred 183,000 completed units to the next department. Required: Compute the equivalent units of production for materials and conversion for October.

Question

Business

Julio Bridges

4 September, 22:06

Clonex Labs, Inc., uses the FIFO method in its process costing system. The following data are available for one department for October: Percent Completed Units Materials Conversion Work in process, October 1 27,000 57 % 33 % Work in process, October 31 20,000 81 % 41 % The department started 176,000 units into production during the month and transferred 183,000 completed units to the next department. Required: Compute the equivalent units of production for materials and conversion for October.

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Madilynn Hanson · Answer 1

Materials 187,230‬

Conversion 182,200

Explanation:

FIFO method, from the started units we will add the reamining work onthe beginning WIP invnetory and subtract the undone part of the ending WIP inventory

Materials

Started units 176,000

October 1st 27,000 x (1 - 57%) = 11,610‬

October 31th 20,000 x (1-81%) = (380)

Equivalent Units 187,230‬

Conversion

Started units 176,000

October 1st 27,000 x (1 - 33%) = 18,000

October 31th 20,000 x (1-41%) = (11,800)

Equivalent Units 182,200