FMT Manufacturing uses a process cost system to manufacture heavy tools of mining industry. The...
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Accounting
FMT Manufacturing uses a process cost system to manufacture heavy tools of mining industry. The following information pertains to operate for the month of May 2012:
Units
Beginning Work in Process inventory , May 1 16,000
Started in production during May 100,000
Completed production during May 92,000
Ending work in process inventory , May 31 24,000
The beginning inventory was 60% complete for materials and 20% complete for conversion cost . The ending inventory was 90% complete for materials and 40% complete for conversion costs:
Costs pertaining to the month of May are as follows:
*The beginning inventory costs are materials, 54,560, direct labor 20,320 and factory overhead , 15,240
*Cost incurred during MAy are materilas used, 468,000 , direct labor 182,880 and factory overhead 391,160
Using the first-in, first-out (FIFO) method, the equivalent units of production for materials are?
a.) 108,000 units
b.)97,600 units
c.) 102,700 units
d.) 104,000 units
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