Problem 8-52 (Static) FIFO Method (LO 8-5)The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs for this division were 80 percent complete as to beginning work-in-process inventory and 50 percent complete as to ending work-in-process inventory. Information about conversion costs follows. UnitsConversion CostsWIP at December 1 (80% complete) 20,000 $232,200 Units started and costs incurred during December 108,000 1,306,800 Units completed and transferred to next department during December 80,000 ? The Oils Division uses FIFO. Required:a-1. Compute the equivalent units for conversion costs.a-2. Compute the cost per equivalent unit for conversion costs.a-3. What was the conversion cost of work-in-process inventory in the Oils Division at December 31?b. What were the conversion costs per equivalent unit produced last period and this period, respectively?

Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you. If you want the remaining sub-parts to be solved, then please resubmit the whole question and specify those sub-parts you want us to solve.Equivalent production: It is a term that expresses the partially completed units as fully completed. It is done by multiplying the partially completed units with the percentage of completion during the period.a-1. The equivalent units for conversion costs is computed as follows: Reference: Calculation: a-2. The cost per equivalent unit for conversion costs is computed as follows: Reference: Calculation: a-3. The conversion cost of work-in-process inventory in the Oils Division at December 31 is as follows: Reference: Calculation:

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FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Problem 8-52 (Static) FIFO Method (LO 8-5)

The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs for this division were 80 percent complete as to beginning work-in-process inventory and 50 percent complete as to ending work-in-process inventory. Information about conversion costs follows.

	Units	Conversion Costs
WIP at December 1 (80% complete)		20,000	$	232,200
Units started and costs incurred during December		108,000		1,306,800
Units completed and transferred to next department during December		80,000		?

The Oils Division uses FIFO.

Required:

a-1. Compute the equivalent units for conversion costs.

a-2. Compute the cost per equivalent unit for conversion costs.

a-3. What was the conversion cost of work-in-process inventory in the Oils Division at December 31?

b. What were the conversion costs per equivalent unit produced last period and this period, respectively?

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