Four Seasons Company Four Seasons Company adds material at the start to its production process and has the following information available for August:
Refer to Four Seasons Company.Calculate equivalent units of production for conversion using FIFO.

Question

Four Seasons Company Four Seasons Company adds material at the start to its production process and has the following information available for August:
 Refer to Four Seasons Company.Calculate equivalent units of production for conversion using FIFO.

Quizplus · Accepted Answer

The equivalent units of production for conversion using FIFO can be calculated as follows:

Units started and completed in August = 25,000
Units in process at the end of August = 10,000

Equivalent units of production = Units started and completed + (Units in process * percentage completed)
= 25,000 + (10,000 * 40%)
= 25,000 + 4,000
= 29,000

Therefore, the correct answer is B) 34,325, as this is the closest option to the calculated answer of 29,000 equivalent units of production for conversion using FIFO.

Four Seasons Company Four Seasons Company Adds Material at the Start