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Howard Poster Incorporated has 12,000 units of work in process in Department A on October 1. These unites were 60 percent complete as to conversion costs. Materials are added in the beginning of the process. During the month of October, 38,000 units were started, and 40,000 units were completed. Howard had 10,000 units of work in process on October 31. These units were 75 percent complete as to conversion costs. a. Compute the equivalent units for materials and conversion costs for the month of October using the FIFO method. b. Using the average cost method, determine the equivalent units for materials and conversion costs for the month of October.

Howard Poster Incorporated has 12,000 units of work in process in Department A on October 1. These unites were 60 percent complete as to conversion costs. Materials are added in the beginning of the process. During the month of October, 38,000 units were started, and 40,000 units were completed. Howard had 10,000 units of work in process on October 31. These units were 75 percent complete as to conversion costs. a. Compute the equivalent units for materials and conversion costs for the month of October using the FIFO method. b. Using the average cost method, determine the equivalent units for materials and conversion costs for the month of October.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Howard Poster Incorporated has 12,000 units of work in process in Department A on October 1. These unites were 60 percent complete as to conversion costs. Materials are added in the beginning of the process. During the month of October, 38,000 units were started, and 40,000 units were completed. Howard had 10,000 units of work in process on October 31. These units were 75 percent complete as to conversion costs. a. Compute the equivalent units for materials and conversion costs for the month of October using the FIFO method. b. Using the average cost method, determine the equivalent units for materials and conversion costs for the month of October.
Transcribed Image Text:Howard Poster Incorporated has 12,000 units of work in process in Department A on October 1. These unites were 60 percent complete as to conversion costs. Materials are added in the beginning of the process. During the month of October, 38,000 units were started, and 40,000 units were completed. Howard had 10,000 units of work in process on October 31. These units were 75 percent complete as to conversion costs. a. Compute the equivalent units for materials and conversion costs for the month of October using the FIFO method. b. Using the average cost method, determine the equivalent units for materials and conversion costs for the month of October.
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