Compute Equivalent Units: FIFO Method
Clean Corporation manufactures liquid window cleaner. The following information concerns its work in process:
• Beginning inventory, 8,000 partially complete gallons.
• Transferred out, 42,000 gallons.
• Ending inventory (materials are 10 percent complete; conversion costs are 20 percent complete).
• Started this month, 48,000 gallons.
Assume that beginning inventory is 50 percent complete with respect to materials and 30 percent complete with respect to conversion costs.
Required
a. Compute the equivalent units for materials using FIFO.
b. Compute the equivalent units for conversion costs using FIFO.