Hickman Company uses a FIFO process costing system.The company had 6,000 units that were 75 percent complete as to conversion costs at the beginning of the month.The company started 25,000 units this period and had 8,000 units in ending Work in Process Inventory that were 40 percent complete as to conversion costs.What are equivalent units for material,if material is added at the beginning of the process?

Question

Quizplus · Accepted Answer

Since material is added at the beginning of the process, the units started in the period are equivalent to the units completed for material. Therefore, the equivalent units for material would be 25,000.

Hickman Company Uses a FIFO Process Costing System