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sergij07 [2.7K]
2 years ago
14

Richards Corporation uses the FIFO method of process costing. The following information is available for October in it's fabrica

ting department: Units: Beginning inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion. Units started and completed: 250,000 Units completed and transferred out: 330,000 Ending inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion Costs: Costs in beginning Work in Process - direct materials: $37,200 Costs in beginning Work in process - conversion: $79,700 Costs incurred in October - Direct materials: $646,800 Costs incurred in October: Conversion: $919,300 Calculate the equivalent units of conversion. A. 250,000 B. 317,000 C. 294,000 D. 333,000 E. 342,000
Business
1 answer:
Fofino [41]2 years ago
6 0

Answer:

B. 317,000

Explanation:

                     Statement of Equivalent production

Particulars           Conversion    % Completion    Equivalent Conversion

Opening WIP              80,000                   80%                 64,000

Units started &           250,000                100%                250,000

completed

Ending WIP                 30,000                   10%                  <u>3,000     </u>

Equivalent Units                                                                <u>317,000 </u>

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