Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: $$\begin{array}{l}
\begin{array} { l r r r r r }
&&&\text { Costs }\
& \text { Units } & \text { Trans.-in } & \text { Materials } & \text { Conv. } \
\text { Work in process, July 1 } & 30 & \$ 1,590 & \$ 0 & \$ 513 \
\text { Transferred in during July } & ? & & & & \
\text { Completed during July } & 105 & & & & \
\text { Work in process, July 31 } & 15 & & & & \
\text { Costs added during July } & & \$ 4,410 & \$ 1,050 & \$ 1,767
\end{array}
\end{array}$$ The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Mountainside's equivalent units for transferred-in units using FIFO would be

Question

Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: $$\begin{array}{l}
\begin{array} { l r r r r r } 
&&&\text { Costs }\
& \text { Units } & \text { Trans.-in } & \text { Materials } & \text { Conv. } \
\text { Work in process, July 1 } & 30 & \$ 1,590 & \$  0 & \$ 513 \
\text { Transferred in during July } & ? & & & & \
\text { Completed during July } & 105 & & & & \
\text { Work in process, July 31 } & 15 & & & & \
\text { Costs added during July } & & \$ 4,410 & \$ 1,050 & \$ 1,767
\end{array}
\end{array}$$ The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Mountainside's equivalent units for transferred-in units using FIFO would be

Quizplus · Accepted Answer

Equivalent units for transferred-in costs under the FIFO method are calculated by adding the units transferred out (completed) that were started and completed this period to the units in ending work in process, minus the beginning work in process, adjusted for the percentage of completion. Since materials are added at the end of the process, they do not affect the calculation for transferred-in costs. The calculation is as follows: (105 units completed - 30 units beginning work in process) + (15 units ending work in process * 0% completion for transferred-in since they are added at the end) = 75 + 15 = 90.

Mountainside Industries Manufactures Specialized Plastic Boxes in Two Processes: Molding