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# Equivalent Units

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Given information

Physical Units Direct Conversion
(Pennants) Materials Costs
__________________________________________________________________________
Work in process, Nov. 1* 1,000 \$1,423 \$1,110
Started in Nov. 2003 ?
Good units completed and transferrred out
during November 2003 9,000
Normal spoilage 100
Abnormal spoilage 50
Work in process, November 30** 2,000
Costs added during November 2003 \$12,180 \$27,750
__________________________________________________________________________
*Degree of completion: direct materials, 100%; conversion costs, 50%
**Degree of completion: direct materials, 100%; conversion costs, 30%

Suppose Gray Manufacturing COmpany uses the FIFO method of process costing instead of the weighted-average method. Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.

#### Solution Summary

The solution explains the calculation of equivalent units under the FIFO method.

\$2.49