Solis Company uses the FIFO method to calculate equivalent units.It has 2,000 units in beginning Work in Process, 20% complete as to conversion costs and 50% complete as to materials costs, 25,000 units started, and 3,000 units in ending Work in Process, 30% complete as to conversion costs, and 80% complete as to materials cost.How much are the equivalent units for materials under the FIFO method?

Question

Quizplus · Accepted Answer

FIFO method counts the equivalent units for materials as the units started and completed during the period plus the equivalent units in the beginning work in process. In this case, the equivalent units for materials are 25,000 units started and completed plus 2,000 units in beginning work in process that are 50% complete, for a total of 27,000 equivalent units.

Solis Company Uses the FIFO Method to Calculate Equivalent Units