(Appendix 4A) The information below was obtained from the records of one of the departments of Cushing Corporation for the month of August. The company uses the FIFO method in its process costing system.
All materials are added at the beginning of the process.
-The equivalent units for materials for the month of August are:
A) 75,000 units
B) 85,000 units
C) 87,500 units
D) 95,000 units

Question

(Appendix 4A) The information below was obtained from the records of one of the departments of Cushing Corporation for the month of August. The company uses the FIFO method in its process costing system.
  All materials are added at the beginning of the process.
-The equivalent units for materials for the month of August are:
A) 75,000 units 
B) 85,000 units 
C) 87,500 units 
D) 95,000 units

Quizplus · Accepted Answer

FIFO method
Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 75,000 - 10,000 = 65,000
 11ea7761_18c7_2a28_81a5_37f57cb29e4e_TB2580_00

(Appendix 4A) the Information Below Was Obtained from the Records