MediSecure, Inc., produces clear plastic containers for pharmacies in a process
ID: 2442900 • Letter: M
Question
MediSecure, Inc., produces clear plastic containers for pharmacies in a process that starts in the Molding Department. Data concerning that department's operations in the most recent period appear below:Beginning work in process:
Units in process 500
Stage of completion with respect to materials 80%
Stage of completion with respect to conversion 40%
Units started into production during the month 153,600
Units completed and transferred out 153,700
Ending work in process:
Units in process 400
Stage of completion with respect to materials 75%
Stage of completion with respect to conversion 20%
Required:
MediSecure uses the FIFO method in its process costing system. Compute the equivalent units of production for the period for the Molding Department.
Explanation / Answer
Units DL Comversion Beg WIP Inv 500 incomplete(100%-80%)*500=100 (100%- 40%)*500=300 Started and comp 153,700 153,700 153,700 End WIP 400 complete 75%*400=300 20%*400=80 EUP 154,100 154,080 Started and completed =500-400 +units started during production=153,700