The Wrapping Department's output during the period consists of 21,000 units completed and transferred out, and 900 units in ending work in process that were 75% complete as to materials and conversion costs. Beginning inventory was 1,200 units that were 30% complete as to materials and conversion costs. Under the FIFO method, what are the equivalent units of production for materials?
A) 22,035
B) 22,515
C) 21,675
D) 21,315

Question

Quizplus · Accepted Answer

Under FIFO, equivalent units for materials = units completed and transferred out + (ending WIP units * % completion) - (beginning WIP units * % completion). Thus, 21,000 + (900 * 75%) - (1,200 * 30%) = 21,315.

The Wrapping Department's Output During the Period Consists of 21,000