Trevor Mills produces agricultural feed at its only plant. Materials are added at the beginning of the process. Information on work-in-process in December follows: • Beginning inventory, 24,000 partially complete units, 10 percent complete with respect to conversion costs. • Units started in December, 85,000 units. • Units transferred out in December, 81,000 units. Ending inventory, 28,000 units, 62 percent complete with respect to conversion costs. Required: Compute the equivalent units for materials and conversion costs for December using the FIFO method. Answer is complete but not entirely correct. Equivalent Units Materials 109,000 Conversion Costs 104,760

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
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Trevor Mills produces agricultural feed at its only plant. Materials are added at the beginning of the process. Information on
work-in-process in December follows:
• Beginning inventory, 24,000 partially complete units, 10 percent complete with respect to conversion costs.
• Units started in December, 85,000 units.
•
Units transferred out in December, 81,000 units.
Ending inventory, 28,000 units, 62 percent complete with respect to conversion costs.
Required:
Compute the equivalent units for materials and conversion costs for December using the FIFO method.
Answer is complete but not entirely correct.
Equivalent
Units
Materials
109,000
Conversion Costs
104,760
Transcribed Image Text:Trevor Mills produces agricultural feed at its only plant. Materials are added at the beginning of the process. Information on work-in-process in December follows: • Beginning inventory, 24,000 partially complete units, 10 percent complete with respect to conversion costs. • Units started in December, 85,000 units. • Units transferred out in December, 81,000 units. Ending inventory, 28,000 units, 62 percent complete with respect to conversion costs. Required: Compute the equivalent units for materials and conversion costs for December using the FIFO method. Answer is complete but not entirely correct. Equivalent Units Materials 109,000 Conversion Costs 104,760
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