Answer:
See Explanation Below
Explanation:
Given
Beginning inventory units = 15,000 units
Beginning Inventory Completed = 60% completed
Current work = 35,000 units started
Ending inventory = 5,000 units
Ending inventory completed = 20% completed
Using FIFO, the production cost report is as follows
First, we determine the physical flow of units;.
This is listed out as follows;
Beginning WIP Inventory: 15,000 units
Unit started this period: 35,000 units
Total units to account for = 50,000 units
Units completed and transferred out: 45,000 units
Ending WIP Inventory: 5,000 units
Total accounted units: 50,000 units
Unit completed and transferred out is calculated by;
Total units to account for - Ending WIP Inventory
= 50,000 units - 5,000 units
= 45,000 units
Calculating the EUP (Equivalent Unit of Production)
Equivalent Unit to complete beginning WIP Inventory
Direct Materials: 15,000 (100% - 100%) = 0 EUP (Direct)
Conversions: 15,000 (100% - 60%) = 6,000 EUP (Conversion)
Equivalent Unit started and completed: 30,000 EUP (Direct)
Equivalent Unit started and completed: 30,000 EUP (Conversion)
Equivalent Unit in ending WIP Inventory:
Direct: 5,000 units * 100% = 5,000 EUP (Direct)
Conversion: 5,000 * 20% = 1,000 EUP (Conversion)
Total Equivalent Unit of Production: 0 EUP + 30,000 EUP + 5,000 EUP = 35,000 EUP (Direct)
Total Equivalent Unit of Production: 6,000 EUP + 30,000 EUP + 1,000 EUP = 37,000 EUP (Conversion)
Note that;
Equivalent Unit started and completed is calculated as follows;
Total Units account for (45,000) - Beginning Unit (15,000) = 30,000 EUP
