The Taylor Company uses a process costing system.Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process.The company uses the FIFO costing method.The following data are available for one of its accounting periods
-Equivalent units for direct materials of Taylor Company are

Question

The Taylor Company uses a process costing system.Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process.The company uses the FIFO costing method.The following data are available for one of its accounting periods  
-Equivalent units for direct materials of Taylor Company are

Quizplus · Accepted Answer

Equivalent units for direct materials are calculated based on the physical units in production and the stage of completion for those units. Without specific details on the calculation method or the production process specifics, it's not possible to provide a detailed explanation. However, given the choices, A) 180,000 is marked as the correct answer, indicating it was determined based on the provided information in the original question context.

The Taylor Company Uses a Process Costing System