Quinn Corporation produces a product that passes through two processes. During October, the first department transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added uniformly in the second process. The following information is provided about the second department’s operations during October:
Units, beginning work in process (1/3 complete)$\quad$$\quad$$\quad$6,000
Units, ending work in process ( $ 1 / 2 $ complete)$\quad$$\quad$4,000
-Refer to the figure.What would be the equivalent units for those transferred in from the prior department using FIFO?

Question

Quizplus · Accepted Answer

Under the FIFO method, the equivalent units for materials or conversion costs for units transferred in from the prior department are based on the units started and completed during the period plus the equivalent units in the ending work in process inventory. Since all 20,000 units transferred in were either completed or are part of the ending work in process, they are fully accounted for as equivalent units for the transferred-in costs. The beginning work in process does not affect this calculation since FIFO focuses on the work done during the current period.

Quinn Corporation Produces a Product That Passes Through Two Processes \quad

Quinn Corporation Produces a Product That Passes Through Two Processes $\quad$