Question

Blue Company has beginning and ending Work-in-Process Inventories that are 45% and 10% complete, respectively. Materials are added at the beginning of the process. If first-in, first-out (FIFO) process costing is used, the total equivalent units for materials will equal the number of units A. transferred out during the period.B. started and completed during the period.C. started into the process during the period.D. started into the process plus the units in the ending inventory.

Answer 1

Answer:

C. started into the process during the period

Explanation:

The equivalent units will be:

beginning x incomplete portion

+ started during the process

- ending x incomplete portion

In this case materials are added atthe beginning of the process. All the units are at 100% so there is no incomplete portion.

leaving on the formula

beginning x 0

+ started during the process

- ending x 0

started during the process