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Bryant Manufacturing produces its product in two sequential processing departments. During October, the first process finished and transferred 310,000 units of its product to the second process. Of these units, 65,000 were in process at the beginning of the month and 245,000 were started and completed during the month. At month-end, 45,000 units were in process. Using the FIFO method, compute the number of equivalent units of production for direct materials for the first process for October assuming that beginning work in process inventory is 30% complete for direct materials cost and ending inventory is 80% complete for direct materials cost.

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The number of equivalent units of production for direct materials for the process for October is 326,500 units.

Given Information

  • Beginning work in process inventory = 65,000 units
  • Percentage completion of beginning inventory = 30%
  • Ending work in process inventory = 45,000 units
  • Units started and completed during the period = 245,000 units
  • Percentage of completion of Ending work in process inventory = 80%

Equivalent Units of Production (FIFO) = [Beginning work in process inventory x Percentage completion of beginning work in process inventory] + Units started and completed during the period + [Ending work in process inventory x Percentage of completion of Ending work in process inventory]

Equivalent Units of Production (FIFO) = [65,000 x 100%-30%} + 245,000 + [45,000 x 80%]

Equivalent Units of Production (FIFO) = 45,500 + 245,000 + 36,000

Equivalent Units of Production (FIFO) = 326,500 units.

Therefore, the number of equivalent units of production for direct materials for the first process is 326,500 units.

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