The first production department in a process manufacturing system reports the following unit data. Beginning work in process inventory Units started and completed 30,400 units 45,600 units Units completed and transferred out 76,000 units Ending work in process inventory 17,300 units are the department's equivalent units of production for direct materials for each of the three se mptions using the FIFO method. Equivalent Units of Production (EUP)-FIFO Method all direct materials are added to products when processing begins.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The first production department in a process manufacturing system reports the following
unit data.
Beginning work in process inventory
Units started and completed
Units completed and transferred out
Ending work in process inventory
30,400 units
45,600 units
76,000 units
17,300 units
Prepare the department's equivalent units of production for direct materials for each of the three separate
assumptions using the FIFO method.
Equivalent Units of Production (EUP)-FIFO Method
1. All direct materials are added to products when processing begins.
Direct Materials
Units
Percent Added
EUP
Beginning work in process inventory
Ending work in process inventory
30,400
17,300
100%
100%
Total
2. Beginning inventory is 30% complete as to direct materials costs. Ending inventory is 75%
complete as to direct materials costs.
Total
Direct Materials
Units
Percent Added
EUP
3. Beginning inventory is 70% complete as to direct materials costs. Ending inventory is 20%
complete as to direct materials costs.
Direct Materials
Units
Percent Added
EUP
Transcribed Image Text:The first production department in a process manufacturing system reports the following unit data. Beginning work in process inventory Units started and completed Units completed and transferred out Ending work in process inventory 30,400 units 45,600 units 76,000 units 17,300 units Prepare the department's equivalent units of production for direct materials for each of the three separate assumptions using the FIFO method. Equivalent Units of Production (EUP)-FIFO Method 1. All direct materials are added to products when processing begins. Direct Materials Units Percent Added EUP Beginning work in process inventory Ending work in process inventory 30,400 17,300 100% 100% Total 2. Beginning inventory is 30% complete as to direct materials costs. Ending inventory is 75% complete as to direct materials costs. Total Direct Materials Units Percent Added EUP 3. Beginning inventory is 70% complete as to direct materials costs. Ending inventory is 20% complete as to direct materials costs. Direct Materials Units Percent Added EUP
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