Loganbery Corporation produces a product that passes through two processes. During January, the first department transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added uniformly in the second process. The following information is provided about the first department's operations during January: Units, beginning work in process ( $ 1 / 3 $ complete) $ \quad 6,000 $
Units, ending work in process ( $ 1 / 2 $ complete) $ \quad 4,000 $ The equivalent units for those transferred in from the prior department using FIFO would be
A)10,000 units.
B)20,000 units.
C)26,000 units.
D)22,000 units.

Question

Quizplus · Accepted Answer

The equivalent units for those transferred in from the prior department using the FIFO method would be the actual units transferred, which is 20,000 units. This is because FIFO (First-In, First-Out) considers the work done on units transferred out during the period without mixing it with the work done on beginning inventory.

Loganbery Corporation Produces a Product That Passes Through Two Processes 1/3 1 / 3 1/3

Loganbery Corporation Produces a Product That Passes Through Two Processes $1 / 3$