Question

Refer to the information in QS 16-10. Calculate the assembly department’s equivalent units of production for materials and for conversion for November. Use the FIFO method

Short answer

EUP for material:10,200 Units

EUP for conversion:9,100 Units

Step-by-step solution

Definition of Equivalent Units of Production

Equivalent units of production can be defined as the metric that calculates the work done by the business entity on the goods that are not completed during the period. In this metric, the finished and semi-finished goods are represented in terms of finished goods.

Equivalent units for material

Particular	Units
Beginning work in the process)$\left(2000\times 40\%\right)$	800
Units started and completed	7,000
Units in ending work in the process $\left(3000\times 80\%\right)$	2,400
Equivalent units of production	10,200

Equivalent units for conversion

Particular	Units
Beginning work in the process$\left(2000\times 60\%\right)$	1,200
Units started and completed	7,000
Units in ending work in the process $\left(3000\times 30\%\right)$	900
Equivalent units of production	9,100

Working note:

Calculation of units started and completed this period:

Particular	Units
Units completed this period	9,000
Less: units in the beginning work-in-process	(2,000)
Units started and completed	7,000