Xeno, Inc. operates a process costing system and uses the FIFO method. Beginning work in process consists of 1,000 units, 30% complete. Ending work in process is 15% complete, and direct materials are added at the 20% point. The equivalent units of production for materials are 14,000 and for conversion costs are 18,000.
The number of units in ending work in process was:
A) 37,000
B) 14,000
C) 18,000
D) 22,000

Question

Quizplus · Accepted Answer

The equivalent units for materials are 14,000, which includes all units completed and transferred out plus the ending work in process. Since materials are added at the 20% point, all units in ending work in process would have received materials. Therefore, to find the units in ending work in process, we subtract the beginning work in process (since it's FIFO, we only consider the work done during the current period) from the equivalent units for materials: 14,000 - (1,000 units * 70% completion for materials in the beginning inventory) = 14,000 - 700 = 13,300. However, since none of the provided options match this calculation and considering the information and options given, it seems there might be a misunderstanding in the calculation process. Given the data, direct calculation of ending work in process units from the provided information is not straightforward without additional data on units started and completed. The correct answer should be derived from understanding the process and the given equivalent units, but with the provided information, a direct calculation error might have occurred in interpreting the question or options.

Xeno, Inc Operates a Process Costing System and Uses the FIFO