Forsyth Company produces calendars in a one-process department. Materials are introduced at the beginning of the process. Conversion is applied uniformly throughout the process. Data for the current period is as follows:

- Assuming Forsyth uses the FIFO method, what were the equivalent units of production for direct materials?

Question

Forsyth Company produces calendars in a one-process department. Materials are introduced at the beginning of the process. Conversion is applied uniformly throughout the process. Data for the current period is as follows:

- Assuming Forsyth uses the FIFO method, what were the equivalent units of production for direct materials?

Quizplus · Accepted Answer

Under the FIFO method, the equivalent units of production for direct materials are calculated based on the work done during the current period only, excluding the work that was already completed in the previous period on the beginning inventory. The correct answer, therefore, reflects the calculation specific to the current period's production activities and the direct materials involved.

Forsyth Company Produces Calendars in a One-Process Department