Answer:
See Explanation Below
Explanation:
Provided
Initial inventory = 15,000 units
Initial Inventory Completion = 60% completed
Current production = 35,000 units initiated
Final inventory = 5,000 units
Completion of final inventory = 20% completed
According to FIFO, here's the production cost report
To start, we clarify the physical flow of units;.
This is enumerated below;
Beginning WIP Inventory: 15,000 units
Units started in this period: 35,000 units
Total units that need to be accounted for = 50,000 units
Units completed and transferred out: 45,000 units
Ending WIP Inventory: 5,000 units
Total accounted units: 50,000 units
Units completed and transferred out is figured by;
Total units to account for - Ending WIP Inventory
= 50,000 units - 5,000 units
= 45,000 units
Calculating the EUP (Equivalent Unit of Production)
Equivalent Unit to finish beginning WIP Inventory
Direct Materials: 15,000 (100% - 100%) = 0 EUP (Direct)
Conversions: 15,000 (100% - 60%) = 6,000 EUP (Conversion)
Equivalent Units that are started and finished: 30,000 EUP (Direct)
Equivalent Units that are started and finished: 30,000 EUP (Conversion)
Equivalent Unit in ending WIP Inventory:
Direct: 5,000 units * 100% = 5,000 EUP (Direct)
Conversion: 5,000 * 20% = 1,000 EUP (Conversion)
Total Equivalent Unit of Production: 0 EUP + 30,000 EUP + 5,000 EUP = 35,000 EUP (Direct)
Total Equivalent Unit of Production: 6,000 EUP + 30,000 EUP + 1,000 EUP = 37,000 EUP (Conversion)
Keep in mind;
The calculation for Equivalent Units started and completed is as follows;
Total units accounted for (45,000) - Initial Units (15,000) = 30,000 EUP
