Gill Corporation adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for March are as follows:
$$\begin{array} { | l | c | c | c | }
\hline & & { \text { Costs } } \
\hline & \text { Units } & \text { Materials } & \text { Conversion } \
\hline \text { Work in process, March 1 } & 25,000 & \$ 68,750 & \$ 167,650 \
\hline \text { Started during March } & 100,000 & 300,000 & 903,350 \
\hline \text { Work in process, March 31 } & 10,000 & & \
\hline
\end{array}$$
Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete.
-Refer to the figure.How many equivalent units for conversion costs would there be for Gill Corporation in March using the FIFO method?

Question

Gill Corporation adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for March are as follows:
$$\begin{array} { | l | c | c | c | } 
\hline & & { \text { Costs } } \
\hline & \text { Units } & \text { Materials } & \text { Conversion } \
\hline \text { Work in process, March 1 } & 25,000 & \$ 68,750 & \$ 167,650 \
\hline \text { Started during March } & 100,000 & 300,000 & 903,350 \
\hline \text { Work in process, March 31 } & 10,000 & & \
\hline
\end{array}$$
Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete.
-Refer to the figure.How many equivalent units for conversion costs would there be for Gill Corporation in March using the FIFO method?

Quizplus · Accepted Answer

Equivalent units for conversion costs = Units started during March + (Units in ending work in process * % complete)= 100,000 + (10,000 * 40%)= 100,000 + 4,000= 104,000 units

Gill Corporation Adds Raw Materials to Production at the Beginning