The mixing department of a company's output during the period consists of 25,000 units completed and transferred out, and 15,000 units in ending Work in Process that were 30% complete as to materials and conversion costs.Beginning inventory was 17,000 units that were 15% complete as to materials and conversion costs.Under the FIFO method, what are the equivalent units of production for materials?

Question

Quizplus · Accepted Answer

To calculate the equivalent units of production for materials using the FIFO method, we need to add the units completed and transferred out with the equivalent units of production for the units in ending Work in Process and subtract the equivalent units of production for the beginning inventory.

Equivalent units of production for materials:

Units completed and transferred out = 25,000
Equivalent units of production for ending Work in Process = 15,000 units × 30% = 4,500
Total equivalent units of production = 25,000 + 4,500 = 29,500
Less: Equivalent units of production for beginning inventory = 17,000 units × 15% = 2,550
Equivalent units of production for materials = 29,500 - 2,550 = 26,950

Therefore, the best choice is B, which is 26,950.

The Mixing Department of a Company's Output During the Period