The information below was obtained from the records of one of the departments of Cushing Corporation...

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The information below was obtained from the records of one of the departments of Cushing Corporation...

The information below was obtained from the records of one of the departments of Cushing Corporation for the month of August. The company uses the FIFO method in its process costing system.

	Units	Percent Complete Labor and Overhead
Work in process, August 1	11,400	25	%
Units completed and transferred out	82,000
Work in process, August 31	20,700	50	%

All materials are added at the beginning of the process.

The equivalent units for materials for the month of August are:

Multiple Choice

82,000 units
91,300 units
95,200 units
102,700 units

business accounting

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Answer 1

Answer #1

Answer

Correct Answer = Option #2: 91300 units = Equivalent units for Material under FIFO method

EUP - FIFO Method	Units	% Material	EUP Materials
Units of ENDING WIP	20,700	100.0%	20,700
Units STARTED & COMPLETED	70,600 [82000 – 11400]	100%	70,600
Units of beginning WIP	11,400	0.00%	-
Equivalent Units of Production			91,300

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Answer 2

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The information below was obtained from the records of one of the departments of Cushing Corporation...

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