Question

East Bay Fisheries Inc. processes king salmon for various distributors. Two departments are involved — processing and packaging. Data relating to tons of king salmon processed in the processing department during June 2016 are provided below:

	Tons of King Salmon	Percent Completed
		Materials	Conversion
Work-in-process inventory —June 1	1,500	90	80
Work-in-process inventory —June 30	2,800	60	40
Started processing during June	7,800

Total equivalent units for conversion under the FIFO method are calculated to be:

		6,560 equivalent units.
		8,180 equivalent units.
		6,420 equivalent units.
		7,140 equivalent units.
		7,320 equivalent units

n a given process costing system, the equivalent units are computed using the weighted-average method. With respect to conversion costs, the percentage of completion for the current period is necessary for the calculation of the:

	Beginning Work-In-Process Inventory	Ending Work-In-Process Inventory
A)	Yes	Yes
B)	Yes	No
C)	No	Yes
D)	No	No

		Option A
		Option B
		Option C
		Option D

please answer both questions

Answer 1

Solution:

1.)
Equivalent units for Materials:

	Material
Beginning work in process(1,500*20%)	300
Units started and completed (7800+1500-2800)-1500	5000
Ending work in process(2800*40%)	1120
Total	6,420

6,420 equivalent Units

2.)

With respect to calculate conversion cost the percentage of completion for the current period ,there's no need of beginning work in process inventory but ending Work in Process Inventory is needed.

Beginning work in process Inventory	Ending work in process Inventory
No	Yes

Option (c) is correct answer.