Figure 6-8 the Following Information Is Available

question 132

Multiple Choice

Figure 6-8 The following information is available:
Materials are added at the beginning of the process.
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Refer to Figure 6-8.Beginning and ending units were 60 percent converted.How many equivalent units for materials would there be using the FIFO method?

• A) 36,000 units
• B) 34,000 units
• C) 30,000 units
• D) 29,200 units

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Definitions:

FIFO Method

A process costing method that calculates unit costs based solely on the costs and outputs from the current period.xa0

Product Costing

The process of determining the total cost associated with producing a product, including raw materials, labor, and overhead.

Equivalent Units

An approach in cost accounting that quantifies the work performed by unfinished units as if they were fully completed units.

FIFO Method

"First In, First Out," an inventory valuation method where the oldest inventory items are recorded as sold first.