Equivalent production with losses (FIFO method)

Adam, the management accountant of Mark Limited, has on file the costs per equivalent unit for the company’s process for the last month but the input costs and quantities appear to have been mislaid. Information that is available to Adam for last month is as follows:

Opening work in progress

100 units, 30% complete

Closing work in progress

200 units, 40% complete

Normal loss

10% of input valued at £2 per unit


1250 units

The losses were as expected and Adam has a record of there being 150 units scrapped during the month. All materials are input at the start of the process. The cost per equivalent unit for materials was £2.60 and for conversion costs was £1.50. Mark Limited uses the FIFO method of stock valuation in its process account.


(a) Calculate the units input into the process.

(b) Calculate the equivalent units for materials and conversion costs.

(c) Using your answer from (b) calculate the input costs.