Bernstein Company uses a FIFO process costing system.The company had 6,000 units that were 75 percent complete as to conversion costs at the beginning of the month.The company started 25,000 units this period and had 8,000 units in ending Work in Process Inventory that were 40 percent complete as to conversion costs.What are equivalent units for material,if material is added at the beginning of the process?

Question

Quizplus · Accepted Answer

Equivalent units for material are calculated using the total units completed during the period and the equivalent units for partially completed units in ending Work in Process Inventory. Material is added at the beginning of the process, so the equivalent units for material are the same as the total units started during the period.

Equivalent units for material = Total units started during the period = 25,000.

Therefore, the answer is choice B) 25,000.

Bernstein Company Uses a FIFO Process Costing System