Asked by Azreen Azahari on May 02, 2024
Verified
Department K had 3,000 units 45% completed in process at the beginning of the period, 17,000 units completed during the period, and 1,200 units 40% completed at the end of the period. What was the number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories? Assume the completion percentage applies to both direct materials and conversion cost.
A) 18,350
B) 16,310
C) 15,650
D) 16,130
First-In, First-Out Method
An inventory valuation method where the oldest inventory items are recorded as sold first, leaving the most recently purchased items in inventory.
Conversion Cost
The combined cost of direct labor and manufacturing overheads incurred to convert raw materials into finished goods.
Equivalent Units
Definition: A concept in cost accounting, equivalent units measure the amount of work done on partially finished goods, expressed in terms of fully completed units.
- Master the technique of computing equivalent units of production via the FIFO method.
- Discern the influence of completion percentages on determining equivalent units.
Verified Answer
Learning Objectives
- Master the technique of computing equivalent units of production via the FIFO method.
- Discern the influence of completion percentages on determining equivalent units.
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