The following information is available:
$\begin{array}{lr}
\text { Units in process at the beginning of the month } & 2,000 \
\text { Units in process at the end of the month } & 4,000 \
\text { Units started during the month } & 30,000
\end{array}$

Materials are added at the beginning of the process.
-Refer to the figure.Beginning and ending units were 60 percent converted.How many equivalent units for materials would there be using the FIFO method?
A)29,200 units
B)30,000 units
C)34,000 units
D)36,000 units

Question

The following information is available:
$\begin{array}{lr}
\text { Units in process at the beginning of the month } & 2,000 \
\text { Units in process at the end of the month } & 4,000 \
\text { Units started during the month } & 30,000
\end{array}$

Materials are added at the beginning of the process.
-Refer to the figure.Beginning and ending units were 60 percent converted.How many equivalent units for materials would there be using the FIFO method?
A)29,200 units
B)30,000 units
C)34,000 units
D)36,000 units

Quizplus · Accepted Answer

Using the FIFO method, we would assume that the units that were partially complete at the beginning of the period were completed first, and therefore would only need to consider material costs for the units that were started and completed during the period. Thus, the equivalent units for materials would be 30,000 units (10,000 started and completed during the period, plus 20,000 units that were complete at the beginning of the period but still required additional materials).

The Following Information Is Available Materials Are Added at the Beginning of the Process