Ely Company had the following data for the current year:
$\begin{array}{llr}
\text {Units in process at the begmning of the month } &4,000\
\text { Units in process at the end of the month } &10,000\
\text { Units started during the month} &40,000
\end{array}$

Materials are added at the beginning of the process. Beginning work in process was 40 percent complete as to conversion. Ending work in process was 70 percent complete as to conversion.
-Refer to the figure.How many equivalent units for materials would there be using the FIFO method?
A)30,000 units
B)39,400 units
C)40,000 units
D)44,000 units

Question

Ely Company had the following data for the current year:
$\begin{array}{llr}
  \text {Units in process at the begmning of the month  } &4,000\
 \text { Units in process at the end of the month   } &10,000\
 \text {  Units started during the month} &40,000
\end{array}$

Materials are added at the beginning of the process. Beginning work in process was 40 percent complete as to conversion. Ending work in process was 70 percent complete as to conversion.
-Refer to the figure.How many equivalent units for materials would there be using the FIFO method?
A)30,000 units
B)39,400 units
C)40,000 units
D)44,000 units

Quizplus · Accepted Answer

Under the FIFO method, equivalent units for materials are calculated based on the units started and completed during the period. Since materials are added at the beginning of the process, all units started during the month (40,000 units) would have received materials, making the equivalent units for materials 40,000.

Ely Company Had the Following Data for the Current Year