Compute equivalent units for direct materials and conversion

Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.?

The assembly division of Fenton Watches, Inc. uses the FIFO method of process costing. Consider the following data for the month of May 2017: EEB (Click the icon to view the data.) Requirement Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Enter the physical units in first, then calculate the equivalent units Physical Flow of Production Units Work in process, beginning Started during current period To account for Completed and transferred out during current period From beginning work in process Started and completed Work in process, ending Accounted for Equivalent unts of work done in current period

Solution

Calculate equivalent unit :

	Physical unit	EUP-direct material	EUP-conversion cost
Work in process, beginning	100
Started into current period	525
To account for	625
Completed and transferred out during current period
From beginning work in process	100	15	70
Unit started and completed	380	380	380
work in process, Ending	145	116	58
Accounted for	625
Equivalent unit work done in current period		511	508