Farwest Inc Required:
Using the FIFO Method,determine the Equivalent Units of Production

question 30

Essay

Farwest Inc.uses the FIFO method in its process costing system.The following data concern the operations of the company's first processing department for a recent month:
$\begin{array}{|l|r|}\hline \text { Work in process, beginning: } & \\\hline \text { Units in process } & 800 \\\hline \begin{array}{l}\text { Stage of completion with respect to } \\\text { materials }\end{array} & 70 \% \\\hline \begin{array}{l}\text { Stage of completion with respect to } \\\text { conversion }\end{array} & 50 \% \\\hline \begin{array}{l}\text { Units started into production during the } \\\text { month }\end{array} & 22,000 \\\hline \text { Work in process, ending: } & \\\hline \text { Units in process } & 300 \\\hline \begin{array}{l}\text { Stage of completion with respect to } \\\text { materials }\end{array} & 80 \% \\\hline \begin{array}{l}\text { Stage of completion with respect to } \\\text { conversion }\end{array} & 70 \% \\\hline\end{array}$

Required:
Using the FIFO method,determine the equivalent units of production for materials and conversion costs by compiling the "Quantity Schedule and Equivalent Units" portion of the production report.

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Definitions:

Adjustment

The process of adapting or modifying behavior, attitudes, or conditions in response to new or altered circumstances.

Working Hard

Putting significant effort, dedication, and perseverance into completing tasks or achieving objectives.

Structure

The arrangement of and relations between the parts or elements of something complex.

Primary Consideration

The foremost in importance or priority that needs to be thought of or addressed.