Problem 1.

Equivalent production

Case A.
In process, beginning (60% incomplete) 6,000 units

Received from pending department 44,000 units

Completed and transferred 45,000 units

In process, end (30% complete) 5,000 units

**Materials in this department are added at the end of the process after quality control inspection.

ANSWER:

Case A.
Weighted Average Method

EUP
Material Conversion
Units s Cost
WIP Beginning 6,000
Receive from pending department 44,000
Total units to account for 50,000
Completed and Transferred 45,000 45,000 45,000
WIP Ending 5,000   1,500
Total units to accounted for 50,000 45,000 46,500

FIFO Method

EUP
Units Materials Conversion Cost
WIP Beginning 6,000
Units started 44,000
Total units to account for 50,000

Beginning WIP already completed 6,000 6,000 3,600

Started during period and completed 39,000 39,000 39,000
Total units completed 45,000
Ending WIP for next period
processing 5,000 1,500
Units accounted for 50,000 45,000 44,100