The following data have been provided by Brice Corporation for the 3-D Printing Department. The company uses the FIFO method in its process costing.Units in process, August 1: materials 60% complete, conversion 30% complete900Units started into production during August8,400Units started and completed during August6,500Units completed and transferred to the next department during August7,400Units in process, August 31: materials 65% complete, conversion 25% complete1,900Required:Determine the equivalent units of production for the 3-D Printing Department for August using the FIFO method.
What will be an ideal response?
FIFO method:
| Materials | Conversion | ||||||
| To complete the beginning work-in-process: | |||||||
| Materials: 900 units × (100% ? 60%) | 360 | ||||||
| Conversion: 900 units × (100% ? 30%) | 630 | ||||||
| Units started and completed | 6,500 | 6,500 | |||||
| Ending work-in-process: | |||||||
| Materials: 1,900 units × 65% | 1,235 | ||||||
| Conversion: 1,900 units × 25% | 475 | ||||||
| Equivalent units of production | 8,095 | 7,605 | |||||
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