5 During April, the first production department of a process manufacturing system completed its work on 395,000 units of a
product and transferred them to the next department. Of these transferred units, 79,000 were in process in the production
department at the beginning of April and 316,000 were started and completed in April. Aprils beginning inventory units
were 80% complete with respect to materials and 20% complete with respect to conversion. At the end of April, 101,000
additional units were in process in the production department and were 85% complete with respect to materials and 35%
complete with respect to conversion.
Exercise 16-10A FIFO: Computing equivalent units of production LO C4
Prepare the number of equivalent units with respect to both materials and conversion costs in the production department for April
using the FIFO method.
Equivalent Units of Production - FIFO
Units
% Materials
EUP- Materials
% Conversion
EUP-Conversion
Units to complete beginning work in process
79,000
316,000
100%
316,000
100%
316,000
Units started and completed
Units in ending work in process
Equivalent units of production
101,000
85%
85,850
35%
35,350
351,350
496,000
401,850
B