Salmont Corporation uses the FIFO method in its process costing system.The company reported 30,800 equivalent units of production for materials last month.The company's beginning work in process inventory consisted of 8,000 units,75% complete with respect to materials.The ending work in process inventory consisted of 6,000 units,80% complete with respect to materials.The number of units started during the month was:
A) 32,000 units
B) 24,000 units
C) 6,800 units
D) 30,000 units

Question

Quizplus · Accepted Answer

FIFO method
FIFO method equivalent units of production
 11ea7761_18bd_17ba_81a5_937affc0cb2b_TB2580_00 2,000 + X + 4,800 = 30,800
X = 30,800 - 2,000 - 4,800 = 24,000
Units started and completed = Units started into production during the period - Units in ending inventory
24,000 = Units started into production during the period - 6,000
Units started into production during the period = 24,000 + 6,000 = 30,000

Salmont Corporation Uses the FIFO Method in Its Process Costing