Figure 6-17
Loganbery Corporation produces a product that passes through two processes. During January, the first department transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added uniformly in the second process. The following information is provided about the first department's operations during January:
Units, beginning work in process (1/3 complete) 6,000 Units, ending work in process (1/2 complete) 4,000
-Refer to Figure 6-17. The equivalent units for those transferred in from the prior department using FIFO would be

Question

Quizplus · Accepted Answer

We need to calculate the equivalent units for those units that were transferred in from the prior department.

Using FIFO, we assume that the units in beginning work in process are completed first, and then we consider the units started and completed during the current period.

So, for the units transferred in from the prior department:

- Units completed during the period: 20,000 
- Units in ending work in process: 0 (since FIFO assumes beginning units are completed first)

Therefore, the equivalent units for those transferred in from the prior department using FIFO = 20,000 units.

Figure 6-17 Loganbery Corporation Produces a Product That Passes Through Two Processes