Solis Company Uses the FIFO Method to Compute Equivalent Units

question 48

Multiple Choice

Solis Company uses the FIFO method to compute equivalent units. It has 4,000 units in beginning work in process, 20% complete as to conversion costs and 50% complete as to materials costs, 66,000 units started, and 6,000 units in ending work in process, 30% complete as to conversion costs, and 80% complete as to materials cost. How much are the equivalent units for materials under the FIFO method?

• A) 66,800
• B) 66,000
• C) 68,800
• D) 70,000

---

Definitions:

Style

In investing, refers to the distinctive characteristics or approach of an investment, such as growth, value, or income.

Dollar-Weighted Return

A method of calculating an investment's return that takes into account the timing and amount of capital inflows and outflows.

Internal Rate of Return

A financial metric used to estimate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Portfolio

A group of investment vehicles comprising equities, debt instruments, natural resources, actual currency, and cash-like assets, also covering collective investments such as closed-end funds and exchange-traded funds.