The Bakersfield Company has the following information available: At the beginning of the period,there were 800 units in process that were 60 percent complete as to conversion costs and 100 percent complete as to direct materials costs.During the current period,5,800 units were started and completed.Ending inventory contained 400 units that were 60 percent complete as to conversion costs and 100 percent complete as to direct materials costs.(Assume that the company uses the FIFO process costing method. )
-The equivalent units of production for direct materials and conversion costs,respectively,of Bakersfield were

Question

The Bakersfield Company has the following information available:  At the beginning of the period,there were 800 units in process that were 60 percent complete as to conversion costs and 100 percent complete as to direct materials costs.During the current period,5,800 units were started and completed.Ending inventory contained 400 units that were 60 percent complete as to conversion costs and 100 percent complete as to direct materials costs.(Assume that the company uses the FIFO process costing method. )
-The equivalent units of production for direct materials and conversion costs,respectively,of Bakersfield were

Quizplus · Accepted Answer

The equivalent units of production for direct materials are equal to the units completed and transferred out of production plus the equivalent units of production in ending work in process. The units completed and transferred out of production are 5,000 units. The equivalent units of production in ending work in process are 1,200 units (1,000 units x 100% complete for direct materials + 200 units x 50% complete for direct materials). Therefore, the equivalent units of production for direct materials are 5,000 units + 1,200 units = 6,200 units.The equivalent units of production for conversion costs are equal to the units completed and transferred out of production plus the equivalent units of production in ending work in process. The units completed and transferred out of production are 5,000 units. The equivalent units of production in ending work in process are 1,360 units (1,000 units x 100% complete for conversion costs + 200 units x 70% complete for conversion costs). Therefore, the equivalent units of production for conversion costs are 5,000 units + 1,360 units = 6,360 units.

The Bakersfield Company Has the Following Information Available: at the Beginning