Question

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department:

Units:
Beginning Inventory: 85,000 units, 70% complete as to materials and 20% complete as to conversion.
Units started and completed: 255,000.
Units completed and transferred out: 340,000.
Ending Inventory: 32,500 units, 40% complete as to materials and 15% complete as to conversion.

Costs:
Costs in beginning Work in Process - Direct Materials: $37,200.
Costs in beginning Work in Process - Conversion: $79,700.
Costs incurred in October - Direct Materials: $646,800.
Costs incurred in October - Conversion: $919,300.

Calculate the equivalent units of materials.

• 255,000

• 360,375

• 293,500

• 377,375

• 385,500

Answer 1

							%	EUP
	Beginning inventory					85,000	30%	25500
	units completed during the year					255,000	100%	255000
	units completed & transferred during the year					340,000
	ending work in process					32,500	40%	13000
	Equivalent units for materials							293500	answer