The Wrapping Department's output during the period consists of 10,000 units completed and transferred out, and 600 units in ending Work in Process that were 75% complete as to materials and conversion costs.Beginning inventory was 800 units that were 30% complete as to materials and conversion costs.Under the FIFO method, what are the equivalent units of production for materials?

Question

Quizplus · Accepted Answer

Under FIFO, equivalent units for materials are calculated by considering only the work done during the current period. This includes units completed and transferred out (10,000), plus the work done on ending inventory (600 units * 75% = 450). Therefore, the equivalent units for materials are 10,000 + 450 = 10,450.

The Wrapping Department's Output During the Period Consists of 10,000