The equivalent units of production for a department using the FIFO process costing method is equal to the number of units completed plus the equivalent units in the ending inventory.

Question

Quizplus · Accepted Answer

The equivalent units of production for a department using the FIFO process costing method is calculated by adjusting for the units and work that were in process at the beginning of the period, focusing only on the work done during the current period. It does not simply add the units completed to the equivalent units in the ending inventory.

The Equivalent Units of Production for a Department Using the FIFO