Higgins Labs Inc., uses a process costing system. The following data are available for one department for October: The department started 45,000 units into production during the month and completed and transferred 50,000 units to the next department. Assuming the FIFO method is used, the equivalent units for material for October would be:
A)55,000 units
B)46,500 units
C)44,500 units
D)48,000 units

Question

Higgins Labs Inc., uses a process costing system. The following data are available for one department for October:  The department started 45,000 units into production during the month and completed and transferred 50,000 units to the next department. Assuming the FIFO method is used, the equivalent units for material for October would be:
A)55,000 units 
B)46,500 units 
C)44,500 units 
D)48,000 units

Quizplus · Accepted Answer

The Answer of Higgins Labs Inc., uses a process costing system. The following data are available for one department for October:  The department started 45,000 units into production during the month and completed and transferred 50,000 units to the next department. Assuming the FIFO method is used, the equivalent units for material for October would be:
A)55,000 units 
B)46,500 units 
C)44,500 units 
D)48,000 units