Use the following data from a company using a process costing system to answer the question(s) below.
The FIFO process costing method is used by the company.
-
Equivalent units for direct materials during the month totaled

Question

Use the following data from a company using a process costing system to answer the question(s) below. 
 The FIFO process costing method is used by the company.
- 
Equivalent units for direct materials during the month totaled

Quizplus · Accepted Answer

Equivalent units for direct materials are calculated by multiplying the number of units in beginning work in process by the percentage of completion for direct materials, and adding the number of units started and completed during the month. In this case, the number of units in beginning work in process is 1,000, the percentage of completion for direct materials is 60%, and the number of units started and completed during the month is 5,500. Therefore, the equivalent units for direct materials are 1,000 x 60% + 5,500 = 6,500.

Use the Following Data from a Company Using a Process