Assuming that Jimbob Co.uses the FIFO method,the equivalent units of production for materials would be?
A) 45,000 units.
B) 46,000 units.
C) 48,000 units.
D) 54,000 units.

Question

Quizplus · Accepted Answer

FIFO method assumes that the first units purchased are the first units used. Therefore, the equivalent units of production for materials would be the number of units that were started and completed during the period, plus the number of units that were started but not completed, multiplied by the percentage of completion. In this case, 45,000 units were started and completed, and 3,000 units were started but not completed, and are 60% complete. Therefore, the equivalent units of production for materials would be 45,000 + (3,000 x 60%) = 45,000 + 1,800 = 46,800 units.

Assuming That Jimbob Co