Hanker Company had the following department data on physical units: $\begin{array}{lr}
\text { Work in process, beginning } & 2,500 \
\text { Completed and transferred out } & 18,000 \
\text { Work in process, ending } & 2,000
\end{array}$ Materials are added at the beginning of the process. What is the total number of equivalent units for materials if the FIFO method is used?

Question

Quizplus · Accepted Answer

Under the FIFO method, the equivalent units for materials are calculated by adding the units completed and transferred out to the units in ending work in process, minus the units in beginning work in process, since materials are added at the beginning of the process. Thus, $18,000 + 2,000 - 2,500 = 17,500$.

Hanker Company Had the Following Department Data on Physical Units