Wright Company Wright Company adds material at the start of production.The following production information is available for September:

Beginning Work in Process Inventory

(45% complete as to conversion) 10,000 units

Started this period 120,000 units

Ending Work in Process Inventory 80% complete as to conversion) 8,200 units

Beginning Work in Process Inventory Costs:

Material $24,500

Conversion 68,905

Current Period Costs:

Material $ 75,600

Conversion 130,053

Refer to Wright Company.What are the equivalent units for conversion using the FIFO method?

Question

Wright Company Wright Company adds material at the start of production.The following production information is available for September:

Beginning Work in Process Inventory
	(45% complete as to conversion)	10,000 units
Started this period		120,000 units
Ending Work in Process Inventory	80% complete as to conversion)	8,200 units
Beginning Work in Process Inventory Costs:
	Material	$24,500
	Conversion	68,905
Current Period Costs:
	Material	$ 75,600
	Conversion	130,053

Refer to Wright Company.What are the equivalent units for conversion using the FIFO method?

Quizplus · Accepted Answer

The equivalent units for conversion using the FIFO method can be calculated as follows:
Equivalent units for units started and completed: 35,000 units
Equivalent units for ending work in process (50% complete): 12,860 units x 0.5 = 6,430 units
Equivalent units for beginning work in process (40% complete): 10,000 units x 0.4 = 4,000 units
Total equivalent units: 35,000 + 6,430 + 4,000 = 45,430 units
Adding the equivalent units for materials (83,430 units), the total equivalent units become 123,860. Therefore, the correct choice is C) 123,860.

Wright Company Wright Company Adds Material at the Start of Production.The Following