Conlon chemicals manufactures paint thinner. information on the work in process follows: • beginning inventory, 40,000 partially complete gallons. • transferred out, 213,000 gallons. • ending inventory (materials are 19 percent complete; conversion costs are 9 percent complete). • started this month, 238,000 gallons. assume that beginning inventory is 50 percent complete with respect to materials and 32 percent complete with respect to conversion costs required:
a. compute the equivalent units for materials using fifo.
b. compute the equivalent units for conversion costs using fifo.

Respuesta :

Equivalent units of work done this period=Units transferred out+EU ending inventory–EU beginning inventory
a. Materials:206,650 EU=211,000 units+13,650 EU–18,000 EU
b. Conversion Costs:206,120 EU=211,000 units+5,200 EU–10,080 EU

the formula states that the eup is equal to the units started and completed plus the ending wip