Question

East Bay Fisheries Inc. processes king salmon for various distributors. Two departments are involved — processing and packaging. Data relating to tons of king salmon processed in the processing department during June 2019 are provided below:

	Tons of King Salmon	Percent Completed
		Materials	Conversion
Work-in-process inventory — June 1	2,100	88	83
Work-in-process inventory — June 30	3,400	63	44
Started processing during June	8,400

Total equivalent units for materials under the FIFO method are calculated to be:

Multiple Choice

• 7,394 equivalent units.

• 9,242 equivalent units.

• 7,545 equivalent units.

• 8,213 equivalent units.

• 8,596 equivalent units.

Answer 1

Answer- Total equivalent units for materials under the FIFO method are calculated to be= 7394 equivalent units.

Explanation- Total equivalent units for materials under the FIFO method = 7100 units+(3400 units*63%)- (2100 units*88%)

= 7100 units+ 2142 units-1848 units

= 7394 units

Where- Total finished units =Opening work in process inventory+ Units started during June-Closing work in process inventory

= 2100 units+8400 units-3400 units

= 7100 units