Marston Corporation uses the FIFO method in its process costing system.The equivalent units of production for March for conversion costs totaled 37,500 units.The beginning work in process inventory in March consisted of 15,000 units,60% complete with respect to conversion costs.The ending work in process inventory in March consisted of 10,000 units,75% complete with respect to conversion costs.The number of units started during the month was:
A) 41,500 units
B) 34,000 units
C) 25,000 units
D) 72,500 units

Question

Quizplus · Accepted Answer

FIFO method
FIFO method equivalent units of production
 11ea7761_18bd_65dd_81a5_5545a166e461_TB2580_00 6,000 + X + 7,500 = 37,500
X = 37,500 - 6,000 - 7,500 = 24,000
Units started and completed = Units started into production during the period - Units in ending inventory
24,000 = Units started into production during the period - 10,000
Units started into production during the period = 24,000 + 10,000 = 34,000

Marston Corporation Uses the FIFO Method in Its Process Costing