Sussex Corporation's production cycle starts in the Mixing Department.The following information is available for April: Materials are added at the beginning of the process in the Mixing Department.What are the equivalent units of production for the month of April,assuming Sussex uses first-in,first-out (FIFO),process costing.

Question

Quizplus · Accepted Answer

The equivalent units of production for the Mixing Department under FIFO process costing would be calculated using the units started in April plus the units in process at the end of April (which are fully complete in terms of materials but not conversion costs). Therefore, the equivalent units for April are 9,000 units (8,000 units started in April + 1,000 units in process at the end of April). Answer choice B represents this calculation.

Sussex Corporation's Production Cycle Starts in the Mixing Department