Department B had 3,000 units in Work in Process that were 25% completed at the beginning of the period at a cost of $12,500. 13,700 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 1,700 units were 95% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. The number of equivalent units of production for the period for materials if the first-in, first-out method is used to cost inventories was:
A) 16,700
B) 12,000
C) 1,700
D) 13,700

Question

Quizplus · Accepted Answer

To calculate the number of equivalent units of production for materials using the first-in, first-out (FIFO) method, we need to first determine the units accounted for during the period.

Units accounted for = units completed + units in ending work in process inventory 
Units accounted for = 15,000 + (1,700 x 0.95) 
Units accounted for = 15,000 + 1,615 
Units accounted for = 16,615

Next, we need to calculate the equivalent units of production for materials. Since materials are added at the beginning of the process, the equivalent units of production for materials will be the same as the units accounted for.

Therefore, the number of equivalent units of production for materials using the FIFO method is 13,700.

Department B Had 3,000 Units in Work in Process That