Question

Normand Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 700 Materials costs $ 8,700 Conversion costs $ 3,700 Percent complete with respect to materials 70 % Percent complete with respect to conversion 10 % Units started into production during the month 6,400 Units transferred to the next department during the month 5,600 Materials costs added during the month $ 92,200 Conversion costs added during the month $ 269,600 Ending work in process inventory: Units in ending work in process inventory 1,500 Percent complete with respect to materials 80 % Percent complete with respect to conversion 25 % What are the equivalent units for materials for the month in the first processing department

Answer 1

Answer:

total equivalent units for materials = 6,310

Explanation:

700 units in beginning work in process:

• materials: 70% complete, $8,700, completed 490 equivalent units, not completed 210 units
• conversion: 10% complete, $3,700

units started in to production 6,400

units transferred out 5,600

ending work in process 1,500

• materials: 80% complete, completed 1,200 equivalent units for materials
• conversion: 25% complete

materials added $92,200

conversion costs added $269,600

equivalent units for materials:

• beginning WIP equivalent units to be completed = 210
• units started and completed = 5,600 - 700 = 4,900
• ending WIP = 1,200 equivalent units
• total equivalent units for materials = 6,310