Question

The Bottling Department of Mountain Springs Water Company had 5,700 liters in beginning work in process inventory (20% complete). During the period, 58,100 liters were completed. The ending work in process inventory was 3,100 liters (70% complete). All inventories are costed by the first-in, first-out method. What are the equivalent units for conversion costs under the FIFO method? equivalent units

Answer 1

Answer:

The equivalent units for conversion costs under the FIFO method is 59,130 liters.

Explanation:

Calculation of Equivalent units of Production for Conversion Costs

Method : FIFO

To Compete Opening Work in Process (5,700 × 80%)  =   4,560

Started and Completed (58,100 -  5,700) × 100%           = 52,400

Closing Work in Process (3,100 × 70%)                           =    2,170

Equivalent units of Production for Conversion Costs    =   59,130