Question

A company operates a three process as its plastic plant. The following data pertain of the...

  1. A company operates a three process as its plastic plant. The following data pertain of the assembly department for December 2019.
  1. Work in process beginning inventory 25,000 units:
  1. Transferred in cost ( 100% complete)
  2. Direct materials ( 0% complete)
  3. Conversion cost (80% complete)

Transferred in during current period 100,000 units and completed and transferred out during current period 110,000 units.

  1. Work in process, ending inventory 20,000 units
  1. Transferred in cost( 100 % complete)
  2. Direct Materials (0% complete)
  3. Conversion cot (40% complete)

Required: Calculate the equivalent units under 1) the weighted average method and 2) FIFO method

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Answer #1

1. Weighted average method:

Equivalent units
Whole units Transferred in cost Direct materials Conversion cost
Units completed and transferred out 110,000 110,000 110,000 110,000
Work in process ending inventory (25,000+100,000-110,000) 15,000 15,000 0 6,000 (15,000*40%)
Total 125,000 125,000 110,000 116,000

2. FIFO method:

Equivalent units
Whole units Transferred in cost Direct materials Conversion cost
Work in process beginning inventory 25,000 0 25,000 5,000 (25,000*20%)
Units started and completed (110,000-25,000) 85,000 85,000 85,000 85,000
Work in process ending inventory (25,000+100,000-110,000) 15,000 15,000 0 6,000 (15,000*40%)
Total 125,000 100,000 110,000 96,000
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