Question

# Department R had 5,000 units in work in process that were 71% completed as to labor...

Department R had 5,000 units in work in process that were 71% completed as to labor and overhead at the beginning of the period. During the period, 27,100 units of direct materials were added, 29,600 units were completed, and 2,500 units were 20% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was

a.31,550

b.37,100

c.26,550

d.29,600

Answer- The number of equivalent units of production for conversion costs for the period was= 26550 units (Option c).

Explanation-

 Statment of Equivalent Production units Under FIFO Method Particluars Input Units Particulars Output Units Equivalent Production % Conversion Costs Opening Work in process 5000 Opening Work in process 5000 29 1450 Units introduced 27100 Units completed (Transferred to next process) [153600 units-500 units] 24600 100 24600 Closing work in process 2500 20 500 Total 32100 32100 26550

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