(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 labor and overhead for the month of August are:
A) 85,000 units
B) 95,000 units
C) 87,500 units
D) 82,500 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 labor and overhead for the month of August are:
A) 85,000 units 
B) 95,000 units 
C) 87,500 units 
D) 82,500 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
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(Appendix 4A) the Information Below Was Obtained from the Records