The following data have been provided by Corby Corporation for the Circuit Prep Department. The company uses the FIFO method in its process costing. Units in process, August 1: materials 60% complete, conversion 45% complete500Units started into production during August8,900Units started and completed during August7,800Units completed and transferred to the next department during August8,300Units in process, August 31: materials 80% complete, conversion 40% complete1,100 Required:Determine the equivalent units of production for the Circuit Prep Department for August using the FIFO method.
What will be an ideal response?
FIFO method:
| Materials | Conversion | |
| To complete beginning work in process: | ||
| Materials: 500 units × (100% ? 60%) | 200 | |
| Conversion: 500 units × (100% ? 45%) | 275 | |
| Units started and completed | 7,800 | 7,800 |
| Ending work in process: | ||
| Materials: 1,100 units × 80% | 880 | |
| Conversion: 1,100 units × 40% | 440 | |
| Equivalent units of production | 8,880 | 8,515 |
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