Direct materials for 8,000 units were added at the beginning of the second process during November. During the month, 8,300 units were completed and transferred to the third process. On November 1, there were 600 units in beginning inventory, and on November 30, there were 300 units still remaining in the process. Compute the equivalent units for direct materials for the second process for November using the FIFO costing method.
A) 8,600
B) 8,000
C) 8,300
D) 8,900

Question

Quizplus · Accepted Answer

Under the FIFO method, equivalent units for direct materials are calculated based on the units started and completed during the period. Since 8,000 units were added and 8,300 units were completed, the equivalent units for direct materials are 8,000.

Direct Materials for 8,000 Units Were Added at the Beginning