Answer (A) is correct . Jones had 8,000 units in ending work-in-process inventory and transferred out 90,000 during the month, for a total of 98,000 units to be accounted for. Since Jones completed 90,000 units during the month and had 10,000 in beginning work-in-process, 80,000 of those completed were started during the month. Under a FIFO system, only the work necessary to complete units in beginning inventory is counted toward equivalent units of production (EUP). Jones’s EUP can be determined as follows: Beginning WIP 10,000 units × ??25% = 2,500 Started and completed 80,000 units × 100% = 80,000 Ending WIP 8,000 units × ??60% = ? 4,800 Totals 98,000 units ? 87,300 10000*0.25+80000+8000*0.6=87300
Answer (B) is incorrect because The figure 88,000 is the number of units started during the month.
Answer (C) is incorrect because The figure 92,300 results from weighting beginning work-in-process for the completion percentage rather than the percentage needed to complete.
Answer (D) is incorrect because The figure 87,300 is the EUP using the FIFO method.
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The number of equivalent units of production for conversion costs for the month of August is
