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
A)180,000.
B)202,000.
C)176,000.
D)191,000.

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
A)180,000. 
B)202,000. 
C)176,000. 
D)191,000.

Quizplus · Accepted Answer

Equivalent units for direct materials are calculated based on the physical units multiplied by the percentage completion for materials. Without specific data on the physical units in process and their percentage completion for materials, it's impossible to calculate or confirm the correct answer. However, based on the options provided and without additional context or calculations, A is selected as the placeholder correct answer.

The Taylor Company Uses a Process Costing System