Use this information about the Finishing Department to answer the questions that follow.

The following production data were taken from the records of the Finishing Department for June:

-What is the number of material equivalent units of production in the June 30, Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories and materials were added at the beginning of the process?
A) 7,000 units
B) 68,000 units
C) 72,000 units
D) 76,000 units

Question

Use this information about the Finishing Department to answer the questions that follow.
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The following production data were taken from the records of the Finishing Department for June:
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-What is the number of material equivalent units of production in the June 30, Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories and materials were added at the beginning of the process?
A) 7,000 units 
B) 68,000 units 
C) 72,000 units 
D) 76,000 units

Quizplus · Accepted Answer

Under the FIFO method, the equivalent units for materials are calculated based on the units started and completed during the period plus the ending inventory. Since materials are added at the beginning, the equivalent units for materials in ending inventory are the same as the physical units.

Use This Information About the Finishing Department to Answer the Questions