Question

Concord Company uses the FIFO method to compute equivalent units. It has 4000 units in beginning work in process, 20% complete as to conversion costs and 50% complete as to materials costs, 67000 units started, and 5800 units in ending work in process, 30% complete as to conversion costs, and 80% complete as to materials cost. How much are the equivalent units for materials under the FIFO method?

Answer 1

67,840 units

Step-by-step explanation:

The computation of the equivalent units for material by using the FIFO method is shown below:

Particulars Unit Percentage completion Equivalent units

Opening

inventory 4,000 units 50% 2,000 units

Completed

& transferred

(67,000

- 5,800) 61,200 units 100% 61,200 units

Closing

inventory 5,800 units 80% 4,640 units

Total 67,840 units