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Material Conversion Equivalent Units of Production 13,000 11,200

Situation A details the reconciliation of units for a production process with 13,000 units introduced and 10,000 units transferred, leaving 3,000 units of work-in-process. Using a weighted average method, the equivalent units of production were calculated as 13,000 units of material and 11,200 units of conversion cost. Situation B involves a production process with 26,800 units introduced and 22,000 units transferred, leaving 6,000 units of work-in-process. Using both a weighted average method and FIFO method, the equivalent units of production were calculated. The weighted average method resulted in 26,800 units of material and 26,200 units of conversion cost. The FIFO method resulted in

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49 views4 pages

Material Conversion Equivalent Units of Production 13,000 11,200

Situation A details the reconciliation of units for a production process with 13,000 units introduced and 10,000 units transferred, leaving 3,000 units of work-in-process. Using a weighted average method, the equivalent units of production were calculated as 13,000 units of material and 11,200 units of conversion cost. Situation B involves a production process with 26,800 units introduced and 22,000 units transferred, leaving 6,000 units of work-in-process. Using both a weighted average method and FIFO method, the equivalent units of production were calculated. The weighted average method resulted in 26,800 units of material and 26,200 units of conversion cost. The FIFO method resulted in

Uploaded by

Anonymous ps3caENg
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Situation A

Material Conversion

Equivalent Units of Production 13,000 11,200


Working

Reconciliation of Units

A Opening WIP -

B Introduced 13,000

C=A+B TOTAL 13,000

D Transferred 10,000

E=C-D Closing WIP 3,000


.

Statement of Equivalent Units(Weighted average)

Material Conversion cost

Units Complete % Equivalent units Complete % Equivalent units

Transferred 10,000 100% 10,000.0 100% 10,000

Closing WIP 3,000 100% 3,000.0 40% 1,200


Total 13,000 Total 13,000.0 Total 11,200
.

Situation B
The answer is solved with two methods since method to be used is not stated.
First Weighted average and then FIFO

Material Conversion

Equivalent Units of Production 26,800 26,200


.

Statement of Equivalent Units(Weighted average)

Material Conversion cost

Units Complete % Equivalent units Complete % Equivalent units

Transferred 22,000 100% 22,000.0 100% 22,000

Closing WIP 6,000 80% 4,800.0 70% 4,200

Total 28,000 Total 26,800.0 Total 26,200


.Now FIFO

Material Conversion

Equivalent Units of Production 18,200 24,800


.
STEP 1 (FIFO)

Reconciliation of Units

% already completed % completed this period

Units Material Conversion cost Material Conversion cost

Beginning WIP 8,000 100% 25% 0% 75%

Units introduced 20,000

Total units to be accounted for 28,000

Completed and Transferred unit 22,000 0% 0% 100% 100%

Ending WIP 6,000 0% 0% 70% 80%


.

STEP 2 (FIFO)

Equivalent Units

Material Conversion cost

% completed this Equivalent % completed this


Units Transferred: Total Units period Units period Equivalent Units

6,00
From WIP 8,000 0% - 75% 0
From units 14,00 14,00
started/Introduced 0 100% 14,000 100% 0

22,00 20,00
Total 0 14,000 0

Total Units Material Conversion cost

% completed this Equivalent % completed this


Ending WIP period Units period Equivalent Units

4,80
Total 6,000 70% 4,200 80% 0

28,00 24,80
Total EUP 0 18,200 0

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