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Chicotti Company has 6,000 units in beginning work in process, 30% complete as to conversion costs, 75,000 units transferred out to finished goods, and 2,000 units in ending work in process 20% complete as to conversion costs. The beginning and ending inventory is fully complete as to materials costs. How much are equivalent units for materials if the FIFO method is used

Respuesta :

abiolataiwo2015

Answer:

71,000

Explanation:

Calculation to determine How much are equivalent units for materials if the FIFO method is used

Using this formula

Equivalent units for materials=(Units transferred out to Finished goods + Units in ending work in process – Units in beginning work in process)

Let plug in the formula

Equivalent units for materials=75,000 + 2,000 – 6,000

Equivalent units for materials= 71,000

Therefore the equivalent units for materials if the FIFO method is used will be 71,000

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