Information concerning Department C of Boot and Shoe Company for the month of March is as follows:
All materials are added at the beginning of the process.
$\begin{array}{lll}&&\text { Materials }\&\text { Units }&\text { Costs }\
\text { Work in process, beginning of month } & 20,000 & \$ 14,250 \
\text { Started in March } & 85,000 & \$ 66,600 \
\text { Units completed } & 90,000 & \
\text { Work in process, end of month } & 15,000 &
\end{array}$
-Refer to the Figure.What would be the equivalent units for materials when using the first-in,first-out method?
A)85,000
B)90,000
C)105,000
D)110,000

Question

Information concerning Department C of Boot and Shoe Company for the month of March is as follows:
All materials are added at the beginning of the process.
 $\begin{array}{lll}&&\text { Materials }\&\text { Units }&\text { Costs }\
\text { Work in process, beginning of month } & 20,000 & \$ 14,250 \
\text { Started in March } & 85,000 & \$ 66,600 \
\text { Units completed } & 90,000 & \
\text { Work in process, end of month } & 15,000 &
\end{array}$
-Refer to the Figure.What would be the equivalent units for materials when using the first-in,first-out method?
A)85,000
B)90,000
C)105,000
D)110,000

Quizplus · Accepted Answer

Under the first-in, first-out (FIFO) method, equivalent units for materials are calculated based on the units started and completed during the period. Since all materials are added at the beginning of the process, the equivalent units for materials would be the units completed (90,000) minus the work in process at the beginning of the month (20,000) plus the work in process at the end of the month (15,000). However, since the beginning inventory is fully processed with respect to materials (as they are added at the beginning), we only consider the units started and completed during the month. Therefore, the equivalent units for materials are the same as the units started in March, which is 85,000.

Information Concerning Department C of Boot and Shoe Company for the Month