The number of equivalent units produced for direct materials cost using the FIFO costing procedure is the sum of the units in beginning work in process inventory, units started and completed during the period, and the productive effort applied to ending work in process inventory.

Question

Quizplus · Accepted Answer

In FIFO costing, equivalent units for direct materials are calculated by considering only the units started and completed during the period and the completion of ending work in process inventory, not the beginning inventory.

The Number of Equivalent Units Produced for Direct Materials Cost