The following information pertains to Jones Company:
$\begin{array}{ll}&\text { Units }\
\text { Work-in-progress inventory, March } 1 \text { (30\% complete) } & 20,000 \
\text { Units transferred in } & 50,000 \
\text { Work-in-progress inventory, March } 31(60 \% \text { complete }) & 16,000
\end{array}$
Materials are added at the start of the progress.
How many equivalent units for conversion costs would there be using the FIFO method?
A)49,600 units
B)70,000 units
C)50,000 units
D)57,600 units

Question

The following information pertains to Jones Company: 
$\begin{array}{ll}&\text { Units }\
\text { Work-in-progress inventory, March } 1 \text { (30\% complete) } & 20,000 \
\text { Units transferred in } & 50,000 \
\text { Work-in-progress inventory, March } 31(60 \% \text { complete }) & 16,000
\end{array}$
Materials are added at the start of the progress.
How many equivalent units for conversion costs would there be using the FIFO method?
A)49,600 units
B)70,000 units
C)50,000 units
D)57,600 units

Quizplus · Accepted Answer

Under the FIFO method, equivalent units for conversion costs are calculated by considering the work needed to complete the beginning inventory, the units started and completed, and the work done on the ending inventory. The calculation is as follows: - Complete the beginning inventory: 20,000 units * (100% - 30%) = 14,000 units- Units started and completed: 50,000 units - 16,000 units = 34,000 units- Work done on ending inventory: 16,000 units * 60% = 9,600 unitsTotal equivalent units = 14,000 + 34,000 + 9,600 = 57,600 units.

The Following Information Pertains to Jones Company Materials Are Added at the Start of the Progress