Fox Corporation
Fox Corporation.has the following information for August:
$\begin{array}{lc}
\text { Beginning Work in Process Inventory } & \
\text { (70\% complete as to conversion) } & 6,000 \text { units } \
\text { Started } & 24,000 \text { unit }\
\text { Ending Work in Process Inventory } & \ \
\text { (10\% complete as to conversion) } & 8,500 \text { units } \
\text { Beginuing WIP Inventory Costs: } & \
\text { Material } &\$ 23,400\
\text { Conversion } & 50,607
\end{array}$
Current Period Costs:
Material $ \$ 31,500 $
Conversion $ 76.956 $

All material is added at the start of the process and all finished products are transferred out.
Refer to Fox Corporation.Assume that FIFO process costing is used.What is the cost per equivalent unit for conversion?

Question

Fox Corporation
Fox Corporation.has the following information for August:
$\begin{array}{lc}
\text { Beginning Work in Process Inventory } & \
\text { (70\% complete as to conversion) } & 6,000 \text { units } \
\text { Started } &  24,000 \text { unit }\
\text { Ending Work in Process Inventory } & \ \
\text { (10\% complete as to conversion) } & 8,500 \text { units }  \
\text { Beginuing WIP Inventory Costs: } & \
\text { Material } &\$ 23,400\
\text { Conversion } & 50,607
\end{array}$
Current Period Costs:
Material                                                                                $ \$ 31,500 $
Conversion                                                                            $ 76.956 $

All material is added at the start of the process and all finished products are transferred out.
Refer to Fox Corporation.Assume that FIFO process costing is used.What is the cost per equivalent unit for conversion?

Quizplus · Accepted Answer

The cost per equivalent unit for conversion under the FIFO method is calculated by adding the current period's conversion costs to the cost needed to complete the beginning work in process inventory's conversion, then dividing by the equivalent units for conversion. First, calculate the equivalent units for conversion:- Units completed and transferred out: 24,000 started - 8,500 ending = 15,500 units- Equivalent units in ending work in process: 8,500 units * 10% = 850 units- Units needed to complete beginning WIP: 6,000 units * (100% - 70%) = 1,800 unitsTotal equivalent units for conversion = 15,500 (completed and transferred) + 850 (ending WIP) + 1,800 (to complete beginning WIP) = 18,150 units.Next, calculate the conversion cost per equivalent unit:- Total conversion costs = Current period conversion costs + Cost to complete beginning WIP's conversion- Since all material is added at the start, and the question focuses on conversion costs, we only consider conversion costs here.- Current period conversion costs = $76,956- Beginning WIP conversion costs to complete = Not explicitly given, but since the material is added at the start, we consider only the conversion costs needed to complete the work, which is already included in the calculation as the work needed to complete the beginning WIP.Therefore, the conversion cost per equivalent unit = $76,956 / 18,150 equivalent units = $4.24.

Fox Corporation Fox Corporation Current Period Costs: Material &Nbsp; &Nbsp; &Nbsp; &Nbsp; &Nbsp; &Nbsp;

Fox Corporation
Fox Corporation Current Period Costs:
Material &Nbsp; &Nbsp; &Nbsp; &Nbsp; &Nbsp; &Nbsp;