Answer the following questions using the information below:
The Rest-a-Lot chair company manufactures a standard recliner.During February,the firm's Assembly Department started production of 75 000 chairs.During the month,the firm completed 80 000 chairs,and transferred them to the Finishing Department.The firm ended the month with 10 000 chairs in ending inventory.There were 15 000 chairs in beginning inventory.All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process.The FIFO method of process costing is used by Rest-a-Lot.Beginning work in process was 30% complete as to conversion costs,while ending work in process was 80% complete as to conversion costs.
Beginning inventory:

$\begin{array}{ll}
\text { Direct materials } & \$ 24000 \
\text { Conversion costs } & \$ 35000
\end{array}$

Manufacturing costs added during the ocounting period:

$\begin{array} { l l } \text { Direct materials } & \$ 168000 \ \text { Conversion costs } & \$ 278000 \end{array}$
-What were the equivalent units for conversion costs during February?

Question

Answer the following questions using the information below:
The Rest-a-Lot chair company manufactures a standard recliner.During February,the firm's Assembly Department started production of 75 000 chairs.During the month,the firm completed 80 000 chairs,and transferred them to the Finishing Department.The firm ended the month with 10 000 chairs in ending inventory.There were 15 000 chairs in beginning inventory.All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process.The FIFO method of process costing is used by Rest-a-Lot.Beginning work in process was 30% complete as to conversion costs,while ending work in process was 80% complete as to conversion costs.
 Beginning inventory:

$\begin{array}{ll}
\text { Direct materials } & \$ 24000 \
\text { Conversion costs } & \$ 35000
\end{array}$

Manufacturing costs added during the ocounting period:

$\begin{array} { l l } \text { Direct materials } & \$ 168000 \ \text { Conversion costs } & \$ 278000 \end{array}$
-What were the equivalent units for conversion costs during February?

Quizplus · Accepted Answer

The equivalent units for conversion costs are calculated by considering the work done on both completed and partially completed units. Using FIFO, we consider the work done during the current period. The calculation is: (80,000 completed - 15,000 beginning inventory) + (10,000 ending inventory * 80%) = 65,000 + 8,000 = 73,000. Adding the work needed to complete the beginning inventory (15,000 * 70%) gives 10,500. Total equivalent units = 73,000 + 10,500 = 83,500.

Answer the Following Questions Using the Information Below: the Rest-A-Lot Direct materials $24000 Conversion costs $35000\begin{array}{ll}\text { Direct materials } & \$ 24000 \\\text { Conversion costs } & \$ 35000\end{array} Direct materials Conversion costs ​$24000$35000​

Answer the Following Questions Using the Information Below:
the Rest-A-Lot $\begin{array}{ll}\text { Direct materials } & \$ 24000 \\\text { Conversion costs } & \$ 35000\end{array}$