Question

Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department had 3,000 liters in beginning work in process inventory (30% complete). During the period, 71,000 liters were completed. The ending work in process was 5,000 liters (70% completed). What is the total equivalent units for direct materials (using the FIFO method) if materials were added at the beginning of the process

Answer 1

Answer:

73,000 units

Explanation:

The computation of the direct material using the FIFO method is shown below:

= Units started and completed units × completion percentage + closing work in process units × completion percentage

= (71,000 units - 3,000 units) × 100% + 5,000 units × 100%

= 68,000 units + 5,000 units

= 73,000 units

We simply applied the above formula so the material equivalent unit could come