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

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Definitions:

Pixel

A single point that creates the images on a computer monitor. Pixels are illuminated by an electron beam that passes rapidly back and forth across the back of the screen so that the pixels appear to glow continuously.

Hertz

A unit of frequency equal to one cycle per second, used to measure the frequency of oscillations and vibrations.

Bit

The most basic unit of data in computing and digital communications, which can have a value of either 0 or 1.

Ppm

Parts per million, a unit of measurement used to describe the concentration of a substance in a mixture or solution.