Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. Calculate the equivalent units of materials.

294,000  units

Explanation:

The computation of the equivalent units of material is shown below:

Particulars                   Physical unitPercentage   Equivalent units

Beginning work in process80,000          40%          32,000

Units started and completed 250,000100%           250,000

Ending work in process  30,000          40%           12,000

Total                                                                     294,000  

In the FIFO method, the beginning work in process should be considered for 40% i.e the remaining percentage i.e come from

= 100% - 60%

= 40%

answer; the correct answer to the above statement is (true);