Information concerning Department A of Ali Company for the month of June is as follows: All materials are added at the beginning of the process.Using the first-in,first-out method,the equivalent units for materials would be:

Question

Information concerning Department A of Ali Company for the month of June is as follows:  All materials are added at the beginning of the process.Using the first-in,first-out method,the equivalent units for materials would be:

Quizplus · Accepted Answer

The equivalent units for materials using the FIFO method would be calculated as follows:
Units completed and transferred out + (Equivalent units in ending work in process inventory - Equivalent units in beginning work in process inventory)
= 90,000 + (5,000 - 10,000)
= 85,000

Information Concerning Department a of Ali Company for the Month