If the FIFO costing method is used and materials are added at the beginning of the period, the total equivalent units for materials will equal the number of units:
A) Started into the process plus the units in the ending inventory
B) Started and completed during the period
C) Transferred out during the period
D) Started into the process during the period

Question

Quizplus · Accepted Answer

Under the FIFO costing method, when materials are added at the beginning of the process, the total equivalent units for materials will equal the number of units started into the process during the period. This is because all materials are added at the start, so every unit started will have materials accounted for, regardless of its completion status by the end of the period.

If the FIFO Costing Method Is Used and Materials Are