Answer:
Weighted Average Equivalent Units Materials 4960 Conversion 5200
Fifo Equivalent Units Materials 4850 Conversion 5140
Explanation:
Normally weighted average method is used when not specified.
Production Flow Percent Complete
Units Materials Conversion
WIP beginning inventory 200 55% 30%
Units started this period 5,000
Total units: 5,200
Completed and transferred 4,800 100%
Work IP, ending inventory 400 40%
Using Weighted Average method for Equivalent Units we add the completed units with the ending inventory
Particulars Units Materials Conversion
Completed 4800 4800 4800
+ WIP Ending 400 160 400
Equivalent Units 4960 5200
Materials EWIP = 400*40%= 160
Conversion EWIP= 400*100 %=400
If we use FIFO method then we deduct the beginning inventory from the weighted average method equivalent unit production
Particulars Units Materials Conversion
Completed 4800 4800 4800
+WIP Ending 400 160 400
- BWIP 200 110 60
Equivalent Units 4850 5140
Materials BWIP = 200*55%= 110
Conversion EWIP= 200*30%= 60
