(Appendix 4A)Using the FIFO Method,what Are the Equivalent Units of Production

question 21

Multiple Choice

(Appendix 4A) Using the FIFO method,what are the equivalent units of production for labour and overhead for the month?

• A) 47,000 units.
• B) 51,000 units.
• C) 5,000 units.
• D) 54,000 units.

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Definitions:

Inventory Balance

The total value of a company's inventory at the end of an accounting period, comprising raw materials, work-in-progress, and finished goods.

LIFO of $450,000

The last-in, first-out method applied to inventory that results in an ending balance of $450,000.

LIFO Reserve

The difference between the cost of inventory calculated using the Last In, First Out (LIFO) method and the cost calculated using the First In, First Out (FIFO) method.

FIFO Assumption

An accounting method where the first items purchased or produced are the first ones used or sold.