The equivalent units of production for a department using the first-in, first-out process costing method is equal to the number of units completed plus the equivalent units in the ending inventory.

Question

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The equivalent units of production for a department using the first-in, first-out (FIFO) process costing method is equal to the number of units completed and transferred out plus the equivalent units of production for the ending work in process inventory, minus the equivalent units in the beginning inventory. This method only considers the work done during the current period.

The Equivalent Units of Production for a Department Using the First-In