Julius Corporation's mixing department began January 2018 with 10,000 gallons of product (40 percent completed) in process. During January, Julius started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed). If materials were added at the beginning of the process, how many equivalent units of production for conversion costs would there be for Julius using the FIFO costing method?

Question

Quizplus · Accepted Answer

Equivalent units of production for conversion costs = Units started in beginning inventory + Units started and completed during the period + Units in ending inventory x % completed= 10,000 gallons x 40% + 100,000 gallons - 15,000 gallons x 70%= 4,000 gallons + 100,000 gallons - 10,500 gallons= 101,500 gallons

Julius Corporation's Mixing Department Began January 2018 with 10,000 Gallons