Explore BrainMass

Explore BrainMass

    Calculate equivalent units using FIFO and weighted-average

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    On March 1, a Company had 20,000 units of WIP in Department A, which were 100% complete as to material costs and 30% complete as to conversion costs. During March, 150,000 units were started in Department A and 160,000 units were completed and transferred to Department B. WIP on March 31 was 100% complete as to material costs and 50% complete as to conversion costs.

    By what amount would the equivalent units for conversion costs for the month of March differ if the FIFO method were used instead of the weighted-average method?
    10,000 decrease.
    8,000 decrease.
    6,000 decrease.
    5,000 decrease.
    4,000 decrease

    © BrainMass Inc. brainmass.com November 24, 2021, 1:44 pm ad1c9bdddf
    https://brainmass.com/business/weighted-average-cost-of-capital/calculate-equivalent-units-fifo-weighted-average-190532

    Solution Preview

    Equivalent units for conversion cost using weighted average method = 160000 [fully ...

    Solution Summary

    This post shows how to calculate the equivalent units using FIFO and weighted-average method of inventory valuation.

    $2.49

    ADVERTISEMENT