Beginning work in process inventory related to conversion was 75% complete for 25,000 units. 50,000 units were started and completed and ending inventory consisted of 10,000 units that were 10% complete. Calculate the equivalent units of production for the conversion costs using the FIFO method.

The equivalent units of production for the conversion costs, using the FIFO method is:

57,250 units

Explanation:

a) Data and Calculations:                         Units     Degree    Equivalent units

Beginning work in process inventory = 25,000     25%           6,250

Units started and completed                 50,000    100%         50,000

Ending work in process inventory         10,000       10%            1,000

Equivalent units of production                                                 57,250

b) The equivalent units of production under FIFO method is equal to the Percentage of work done on beginning inventory in current period + Units started and completed during current period + Percentage of work done on ending inventory in current period.

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