Direct materials for 6,800 units were added at the beginning of the second process during November.During the month,7,100 units were completed and transferred to the third process.On November 1,there were 600 units in beginning inventory,and on November 30,there were 300 units still remaining in the process.Compute the equivalent units for direct materials for the second process for November using the FIFO costing method.

Question

Quizplus · Accepted Answer

Under FIFO, equivalent units for direct materials are calculated as units started and completed during the period plus the ending inventory. Here, 6,800 units were started and completed (7,100 completed - 300 ending inventory), so the equivalent units for direct materials are 6,800.

Direct Materials for 6,800 Units Were Added at the Beginning