When using the first-in, first-out method of process costing, equivalent units for work done during this period is equal to the number of units:
A)In work-in-process at the beginning of the period times the percent of work necessary to complete the items, plus the number of units started and completed during the period, plus the number of units remaining in work-in-process at the end of the period times the percent of work done during the period.
B)In work-in-process at the beginning of the period, plus the number of units started during the period, plus the number of units remaining in work-in-process at the end of the period times the percent of work necessary to complete the items.
C)Started into process during the period, plus the number of units in work-in-process at the beginning of the period.
D)Transferred out during the period, plus the number of units remaining in work-in-process at the end of the period times the percent of work necessary to complete the items.
E)None of the above.

Question

Quizplus · Accepted Answer

Equivalent units for work done during the period, under the first-in, first-out (FIFO) method, include the work needed to complete the units that were in process at the beginning of the period, plus the units that were started and completed during the period, and the work done on the units that are still in process at the end of the period. This is accurately described in option A.

When Using the First-In, First-Out Method of Process Costing, Equivalent