ABC Company produces a single product. Material A is added at the start of the production process and packaging material B is added at the end of the process. Conversion costs are incurred uniformly throughout the process. Inspection takes place when manufacturing is completed, but before packaging Material B is added. Normal spoilage for this production process is 5% of good output. Production data for this year was as follows:
- Beginning work-in-process inventory (80% complete) 2,000 units
- Units started 18,000 units
- Good units completed and sold 16,000 units
- Ending work-in-process inventory (40% complete) 1,000 units
What are equivalent units for Material A, Material B, and Conversion costs? (Use FIFO process costing to find equivalent units for Material A, Material B and Conversion Cost)