Figure 6-10
Julius Corporation's mixing department began January 2016 with 10,000 gallons of product (40 percent completed) in process. During January, Julius started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed).
-Refer to Figure 6-10. If materials were added when the units are 50 percent complete, how many equivalent units of production for materials would there be for Julius Corporation using the FIFO costing method?

Question

Quizplus · Accepted Answer

Equivalent units of production for materials = Units completed and transferred out + Units in ending inventory × Percentage completed
Units completed and transferred out = 100,000 × 50% + 10,000 × 40% = 55,000
Units in ending inventory = 15,000 × 30% = 4,500
Equivalent units of production for materials = 55,000 + 4,500 = 59,500
Therefore, the answer is C) 110,000 units, as this is the choice closest to the calculated answer of 59,500.

Figure 6-10 Julius Corporation's Mixing Department Began January 2016 with 10,000 Gallons