Question

Kalyan Corporation uses the FIFO method in its process costing system. Operating data for the Enameling Department for the month of May appear below: Units Percent Complete with Respect to Conversion Beginning work in process inventory 1,900 20 % Transferred in from the prior department during May 65,000 Ending work in process inventory 7,300 70 % What were the equivalent units of production for conversion costs in the Enameling Department for May?

Answer 1

Answer:

64,330 units

Explanation:

The computation of the equivalent units of production for conversion costs is shown below:

= Units started and completed units × completion percentage + ending work in process units × completion percentage - beginning work in process units × completion percentage

where,

Units started and completed units = 1,900 units + 65,000 units - 7,300 units

= 59,600 units

Now the equivalent units of production for conversion costs is

= 59,600 units + 7,300 units × 70% -  1,900 units × 20%

= 59,600 units + 5,110 units - 380 units

= 64,330 units