Solis Company Uses the FIFO Method to Calculate Equivalent Units

question 52

Multiple Choice

Solis Company uses the FIFO method to calculate equivalent units.It has 2,000 units in beginning Work in Process, 20% complete as to conversion costs and 50% complete as to materials costs, 25,000 units started, and 3,000 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)27,400
• B)25,000
• C)26,400
• D)27,000

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Definitions:

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A budget created for a specific level of activity, used as a tool for decision-making and financial planning.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for variance analysis.

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