The following data were taken from the accounting records of Abacus Company which uses the FIFO...
Question:
The following data were taken from the accounting records of Abacus Company which uses the FIFO method in its process costing system:
| Beginning work in process inventory: | 39,000 units (materials 100% complete, labor and overhead 50% complete) |
| Started in process during the period: | 118,000 units |
| Ending work in process inventory: | 49,000 units (materials 100% complete, labor and overhead 60% complete) |
The equivalent units are? Please show your work.
FIFO Inventory Method of Finding Equivalent Units:
Equivalent units, calculated under the FIFO (first-in, first-out method) are calculated by taking the number of finished units during an accounting period or a month had there been no unfinished units, either in the opening work-in-process inventory of the period or the month, or in the ending work-in-process inventory at the end of the period or the month.
Answer and Explanation: 1
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View this answer| Description | Materials | Labor and Overhead |
| Units in beginning WIP (A) | 39,000 | 39,000 |
| % of completion of beginning WIP in previous period (B) | 100% | 50% |
| % of... |
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FIFO Inventory Method of Finding Equivalent Units
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Chapter 6 / Lesson 3
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The FIFO inventory method stands for First in First Out, where costs accrued first will be paid out before those acquired later. Learn how to identify equivalent units using this method, and how to develop a production cost report as well.
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