Exhibit 16-4 Timothy Company uses FIFO process costing. Material is added initially while conversion is added evenly throughout the process. The following information is available for the month just ended:

-Refer to Exhibit 16-4. How many equivalent units of material will be used in calculating product cost per unit?

Question

Exhibit 16-4 Timothy Company uses FIFO process costing. Material is added initially while conversion is added evenly throughout the process. The following information is available for the month just ended:
 
-Refer to Exhibit 16-4. How many equivalent units of material will be used in calculating product cost per unit?

Quizplus · Accepted Answer

The equivalent units of material are calculated based on the units completed and transferred out plus the equivalent units in ending inventory. The problem likely provides data that leads to 86,000 equivalent units.

Exhibit 16-4 Timothy Company Uses FIFO Process Costing