Grant Corporation The following information is available for Grant Corporation for the current month:

Normal spoilage (discrete) 1,100 units

Abnormal spoilage 900 units

Ending WIP (70% complete) 13,000 units

Transferred out 72,500 units

Beginning Work in Process Costs:

Material $10,400

Conversion 13,800

Current Costs:

Material $120,000

Conversion 350,000

All materials are added at the start of production and the inspection point is at the end of the process. Refer to Grant Corporation.What is cost per equivalent unit for conversion costs using FIFO?

Question

Grant Corporation The following information is available for Grant Corporation for the current month:

Normal spoilage (discrete)		1,100 units
Abnormal spoilage		900 units
Ending WIP	(70% complete)	13,000 units
Transferred out		72,500 units
Beginning Work in Process Costs:
	Material	$10,400
	Conversion	13,800
Current Costs:
	Material	$120,000
	Conversion	350,000

All materials are added at the start of production and the inspection point is at the end of the process. Refer to Grant Corporation.What is cost per equivalent unit for conversion costs using FIFO?

Quizplus · Accepted Answer

The cost per equivalent unit for conversion costs using FIFO is calculated by dividing the current period conversion costs by the equivalent units for conversion. Equivalent units for conversion are calculated by considering the work done on the units completed and transferred out, the work done on ending WIP, and the work done on abnormal spoilage.

Grant Corporation the Following Information Is Available for Grant Corporation for the for the Current