contestada

Richards Corporation uses the FIFO method of process costing. The following
information is available for October in its Fabricating Department:
Units:
Beginning Inventory: 80,000 units, 60% complete as to materials and 20%
complete as to conversion.
Units started and completed: 250,000.
Units completed and transferred out: 330,000.
Ending Inventory: 30,000 units, 40% complete as to materials and 10%
complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $37,200.
Costs in beginning Work in Process - Conversion: $79,700.
Costs incurred in October - Direct Materials: $646,800.
Costs incurred in October - Conversion: $919,300.
Calculate the equivalent units of materials.

Respuesta :

abiolataiwo2015

If Richards Corporation uses the FIFO method of process costing. The  equivalent units of materials is 294,000.

Equivalent unit of material (FIFO)

Using this formula

Equivalent unit of material (FIFO) =[(Beginning inventoryĂ—Percentage complete)+Units started and complete+ (Ending inventoryĂ— Percentage complete as to materials)]

Let plug in the formula

Equivalent unit of material (FIFO) = [80,000Ă—40%+250,000+30,000Ă—40%]

Equivalent unit of material (FIFO) = 32,000+250,000+12,000

Equivalent unit of material (FIFO) = 294,000

Therefore the equivalent units of materials is 294,000.

Learn more about equivalent units of materials here:https://brainly.com/question/18095329

#SPJ1

Otras preguntas