QualCon, Inc., produces wine bottles for vintners in a process that starts in the Melt and Mold Department. Data concerning that department’s operations in the most recent period appear below:
Required:
QualCon uses the FIFO method in its process costing system. Compute the equivalent units of production for the period for the Melt and Mold Department
594
To compute the equivalent units of production for the Melt and Mold Department using the FIFO method, you will need to consider the units that are completed during the period and the partially completed units that are still in process.
Here's the step-by-step process:
1. Identify the units completed during the period: Look at the data provided and find the number of units that have been completed and transferred out of the Melt and Mold Department. These are the units that have finished the entire production process in this department.
2. Calculate the equivalent units for the units in process: Look at the data to determine the number of partially completed units that are still in process at the end of the period. Multiply the number of these units by the percentage of completion to find the equivalent units for these partially completed units.
3. Add the equivalent units from steps 1 and 2: Add the equivalent units of the completed units and the equivalent units for the units in process to get the total equivalent units.
By following this process, you will be able to calculate the equivalent units of production for the Melt and Mold Department for the specified period.