Question

Carver Corporation uses the FIFO method in its process costing system. The Assembly Department started the month with 2700 units in its beginning work in process inventory that were 60% complete with respect to conversion costs. An additional 73,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 9700 units in the ending work in process inventory of the Assembly Department that were 50% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month?

Answer 1

Beginning work in process			2,700	transferred out			66,000
transferred in			73,000	ending work in process			9,700
units to be accounted			75,700	units accounted for			75,700
				units	%	CC
beginning work in process				2,700	40%	1080
started and completed during the year				63300	100%	63300
transferred out				66,000
ending work in process				9,700	50%	4850
Equivalent units for conversion				75,700		69230
	answer	69,230 units