Question:
(FIFO EUP) In manufacturing its products, Trevano Corp. adds all direct material at the beginning of the production process. The company's direct labor and overhead are considered to be continuously at the same degree of completion. September production information is as follows:
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Beginning WIP Inventory
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24,000 pounds
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Started during September
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600,000 pounds
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Completed during September
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608,000 pounds
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As of September 1, the beginning WIP Inventory was 45 percent complete as to labor and overhead. On September 30, the ending WIP Inventory was 65 percent complete as to conversion.
Assume that Trevano Corp uses the FIFO method of process costing.
a. What proportion of work needs to be performed on the beginning inventory units to complete them?
b. What are the equivalent units of production for direct material?
c. What are the equivalent units of production for conversion?