Use the following data provided by Star Inc.to answer the questions below.The company uses a process costing system. The FIFO costing method is used by the company.
-Equivalent units for direct materials of Star Inc.during the month totaled
A)6,400.
B)8,600.
C)6,600.
D)7,600.

Question

Use the following data provided by Star Inc.to answer the questions below.The company uses a process costing system.  The FIFO costing method is used by the company.
-Equivalent units for direct materials of Star Inc.during the month totaled
A)6,400. 
B)8,600. 
C)6,600. 
D)7,600.

Quizplus · Accepted Answer

The equivalent units for direct materials are calculated based on the units completed and transferred out plus the equivalent units in ending inventory. The problem statement or additional data would be needed to confirm this calculation, but based on the options provided, 6,400 is the correct choice.

Use the Following Data Provided by Star Inc