Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 23

Beginning work-in-process is 2,000 units; units completed is 44,000 units, and ending work-in- process is 3,000 units, which are 100 percent complete for materials and 50 percent complete for conversion costs. The beginning work-in-process inventory is 100 percent complete for materials and 50 percent complete for conversion.

a. What are the equivalent units for materials and conversion using the weighted average method?

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b. What are the equivalent units for materials and conversion using the FIFO method?

Step 1 of 3

Equivalent units of production:

Equivalent units:

Equivalent units of production are an indication to show the work in process inventory at the end of an accounting period. The equivalent units are calculated for allocation of costs of process to the gallons which are fully completed and transferred. It means converting the uncompleted production into completed units.