Department M had 2,000 units 40% completed in process at the beginning of June, 12,000 units completed during June, and 1,200 units 25% completed at the end of June. What was the number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories?
A) 11,500 units
B) 11,200 units
C) 15,200 units
D) 10,000 units

Question

Quizplus · Accepted Answer

The equivalent units of production for conversion costs using the FIFO method are calculated by adding the completed units to the equivalent units for the ending work in process, minus the stage of completion of the beginning inventory. For June, this calculation is as follows: 12,000 units completed + (1,200 units * 25% completion) - (2,000 units * 40% completion) = 12,000 + 300 - 800 = 11,500 units.

Department M Had 2,000 Units 40% Completed in Process at the Beginning