Conlon Chemical manufactures paint thinner. Information on the work in process follows: • • - Beginning inventory, 30,000 partially complete gallons. - Transferred out, 157, 500 gallons. Ending inventory (materials are 10 percent complete conversion costs are 20 percent complete). - Started this month, 180,000 gallons. Assume that beginning inventory is 50 percent complete with respect to materials and 30 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

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter6: Process Costing
Section: Chapter Questions
Problem 16E: Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The...
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Conlon Chemical manufactures paint thinner. Information on the
work in process follows:
•
•
- Beginning inventory, 30,000 partially complete gallons.
- Transferred out, 157, 500 gallons.
Ending inventory (materials are 10 percent complete
conversion costs are 20 percent complete).
- Started this month, 180,000 gallons.
Assume that beginning inventory is 50 percent complete with
respect to materials and 30 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
Transcribed Image Text:Conlon Chemical manufactures paint thinner. Information on the work in process follows: • • - Beginning inventory, 30,000 partially complete gallons. - Transferred out, 157, 500 gallons. Ending inventory (materials are 10 percent complete conversion costs are 20 percent complete). - Started this month, 180,000 gallons. Assume that beginning inventory is 50 percent complete with respect to materials and 30 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
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