Conlon Chemicals manufactures paint thinner. Information on the work in process follows: • Beginning inventory, 37,000 partially complete gallons. • Transferred out, 215,000 gallons. • Ending inventory (materials are 19 percent complete; conversion costs are 11 percent complete). • Started this month, 238,000 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.
Conlon Chemicals manufactures paint thinner. Information on the work in process follows: • Beginning inventory, 37,000 partially complete gallons. • Transferred out, 215,000 gallons. • Ending inventory (materials are 19 percent complete; conversion costs are 11 percent complete). • Started this month, 238,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Conlon Chemicals manufactures paint thinner. Information on the work in process follows:
• Beginning inventory, 37,000 partially complete gallons.
• Transferred out, 215,000 gallons.
• Ending inventory (materials are 19 percent complete; conversion costs are 11 percent complete).
• Started this month, 238,000 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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