The following production data were taken from the records of the Finishing Department for June:
-The number of materials equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories and materials were added at the beginning of the process, is
A)7,000 units
B)68,000 units
C)72,000 units
D)76,000 units

Question

The following production data were taken from the records of the Finishing Department for June:  ​
-The number of materials equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories and materials were added at the beginning of the process, is
A)7,000 units 
B)68,000 units 
C)72,000 units 
D)76,000 units

Quizplus · Accepted Answer

Under the first-in, first-out (FIFO) method, only the work done in the current period is considered for units in the beginning inventory and units started and completed during the period. Since materials are added at the beginning of the process, all materials would be 100% complete for units in process at the end of the period. Therefore, the equivalent units for materials would be the total units in the ending inventory, assuming the question's data implies that all units in the ending inventory were started and completed in the current period. Without specific numbers for beginning inventory, units started, or units completed, the correct answer cannot be determined from the provided options without additional context. However, based on the given options and typical understanding, the answer is chosen as A) 7,000 units, assuming it refers to the units in the ending inventory that were fully processed with materials in the current period.

The Following Production Data Were Taken from the Records of the Finishing