Chapman Corporation The following information is available for Chapman Corporation for the current month:
All materials are added at the start of production and the inspection point is at the end of the process.
Refer to Chapman Corporation.What are equivalent units of production for conversion costs using FIFO?

Question

Chapman Corporation The following information is available for Chapman Corporation for the current month:
 All materials are added at the start of production and the inspection point is at the end of the process.
Refer to Chapman Corporation.What are equivalent units of production for conversion costs using FIFO?

Quizplus · Accepted Answer

To calculate the equivalent units of production for conversion costs using FIFO, we add the units completed and transferred out to the equivalent units of production in ending work in process inventory. 
Units completed and transferred out = 84,000
Equivalent units of production in ending WIP inventory:
- Materials = 3,000 (100% complete as all materials are added at start of production)
- Conversion costs = 80,600 (4,000 units in WIP x 100% complete for conversion costs)
Total equivalent units of production for conversion costs = 80,600 (i.e. Option D)

Chapman Corporation the Following Information Is Available for Chapman Corporation