Stillwater Corporation
The following information is available for Stillwater Corporation for the current year:
Beginning Watk in Process Costs of Begiluing Work in
Process:

(75% complete) 14,500 units Materil $ \$ 25,100 $

$\begin{array}{lll}
\text { Started } & 75,000 \text { units } & \text { Conversion } & 50,000 \
\text { Ending Work in Process } & \text { Cumrent Costs: }
\end{array}$

$\begin{array}{llll}
\text { (60\% complete) } & 16,000 \text { units } & \text { Material } & \$ 120,000 \
\text { Abtormal spoilage } & 2,500 \text { units } & \text { Conversion } & 300,000 \
\text { Normal spoilage (continuous) } & 5,000 \text { units } & \
\text { Tranferred out } & 66,000 \text { units } &
\end{array}$

All materials are added at the start of production.
Refer to Stillwater Corporation.Using FIFO,what are equivalent units for conversion costs?

Question

Stillwater Corporation
The following information is available for Stillwater Corporation for the current year:
Beginning Watk in Process             Costs of Begiluing Work in
                                                                      Process:

(75% complete)                      14,500 units            Materil            $ \$ 25,100 $

$\begin{array}{lll}
\text { Started } & 75,000 \text { units } & \text { Conversion } & 50,000 \
\text { Ending Work in Process } & \text { Cumrent Costs: } 
\end{array}$

$\begin{array}{llll}
\text { (60\% complete) } & 16,000 \text { units } & \text { Material } & \$ 120,000 \
\text { Abtormal spoilage } & 2,500 \text { units } & \text { Conversion } & 300,000 \
\text { Normal spoilage (continuous) } & 5,000 \text { units } & \
\text { Tranferred out } & 66,000 \text { units } &
\end{array}$

All materials are added at the start of production.
Refer to Stillwater Corporation.Using FIFO,what are equivalent units for conversion costs?

Quizplus · Accepted Answer

To calculate the equivalent units for conversion costs, we need to consider the units that are completed and transferred out plus the equivalent units of the ending work in process. Using the FIFO method, we assume that the beginning work in process is completed first.

The equivalent units of the completed and transferred out units are 66,000 since they are fully completed.

For the ending work in process, we need to calculate the equivalent units for both material and conversion costs separately.

For conversion costs, we only consider the units that are in the ending work in process, which are 16,000 units at 60% completion. Therefore, the equivalent units for conversion costs are 16,000 x 60% = 9,600 units.

Adding the equivalent units for both completed and ending work in process units, we get:

66,000 + 9,600 = 75,600 equivalent units for conversion costs.

Therefore, the answer is (B) 67,225.

Stillwater Corporation the Following Information Is Available for Stillwater Corporation $25,100 \$ 25,100 $25,100

Stillwater Corporation
the Following Information Is Available for Stillwater Corporation $\$ 25,100$