Department A had 5,000 units in work in process that were 60% completed as to labor and overhead at the beginning of the period; 34,000 units of direct materials were added during the period; 31,000 units were completed during the period; and 2,000 units were 80% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories.
The number of equivalent units of production for material costs for the period was
A) 34,000
B) 29,800
C) 29,000
D) 32,000

Question

Quizplus · Accepted Answer

Under the FIFO method, equivalent units for materials are calculated based only on the units started and completed during the period. Since all materials are added at the beginning, the equivalent units for materials are the same as the units started and completed, which is 34,000 units.

Department a Had 5,000 Units in Work in Process That