Equivalent Units of Production represent the notional quantity of completed units substituted for an actual quantity of incomplete units. It means converting the incomplete units into its equivalent completed units. Conversion Cost is a type of cost which is incurred to convert raw materials into finished product. It is the combination of direct labor and manufacturing overhead . Conversion cost is nothing but value added to the raw materials to make it sellable in the market. To Determine: Equivalent Units of Production for Direct Material and Conversion Cost under FIFO Method

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Chapter 20, Problem S20A.16SE

To determine

Equivalent Units of Production represent the notional quantity of completed units substituted for an actual quantity of incomplete units. It means converting the incomplete units into its equivalent completed units.

Conversion Cost is a type of cost which is incurred to convert raw materials into finished product. It is the combination of direct labor and manufacturing overhead. Conversion cost is nothing but value added to the raw materials to make it sellable in the market.

To Determine:

Equivalent Units of Production for Direct Material and Conversion Cost under FIFO Method

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