Duffy Company makes fabric-covered hatboxes.The company began July with 500 boxes in process that were 100 percent complete as to cardboard,80 percent complete as to cloth,and 60 percent complete as to conversion costs.During the month,3,300 boxes were started.On April 30,350 boxes were in process (100 percent complete as to cardboard,70 percent complete as to cloth,and 55 percent complete as to conversion costs).Using the FIFO method,what are equivalent units for cloth?

Question

Quizplus · Accepted Answer

The equivalent units for cloth using the FIFO method are calculated by considering the work needed to complete the beginning inventory, the work done on units started and completed during the period, and the work done on ending inventory. The calculation is: (500 boxes * 20% remaining) + (3,300 boxes started - 350 boxes in ending inventory) + (350 boxes * 70% complete) = 100 + 2,950 + 245 = 3,295 equivalent units for cloth.

Duffy Company Makes Fabric-Covered Hatboxes