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A company began the month with 10,000 units in work-in-process inventory that were 60% complete. During the month, the company transferred 120,000 units to finished goods. At the end of the month, 20,000 units were in work-in-process inventory that were 20% complete. If the FIFO method is used, the equivalent units of production during the month equal:_________

Answer :

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Answer:

If the FIFO method is used, the equivalent units of production during the month equal:_________122,000

Explanation:

FIFO Equivalent Units

Particulars             Units        % Of Completion              Equivalent Units

                                          Materials Conversion     Materials   Conversion

Beginning Inventory   10,000      60        60               6000        6000

+Units Transferred     120,000      100       100           120,000     120,000

Less

Ending Inventory         20,000        20       20              4000          4000

FIFO Equiv. Units                                                           122,000     122,000

FIFO method uses the beginning units and deducts the ending units. For this we add the beginning units and deduct the Ending units to get the First In First Out units. AS the name suggests it only deals with the beginning units First purchased or produced and leaves the  ending units Last produced.

If the FIFO method is employed, the equivalent units of production during the month equal: 122,000

What is the FIFO method?

FIFO method uses the start units and deducts the ending units. For this, we add the start units and deduct the Ending units to induce the primary In First Out units. because the name suggests it only deals with the start units First purchased or produced and leaves the ending units Last produced.

Now we find FIFO Equivalent Units is:

Particulars             Units       % Of Completion              Equivalent Units

                                         Materials Conversion     Materials   Conversion

Beginning Inventory   10,000      60        60               6000        6000

+Units Transferred    120,000      100       100           120,000     120,000

                                                                                                                       

Less

Ending Inventory         20,000        20       20             4000         4000

                                                                                                                         

FIFO Equiv. Units                                                           122,000     122,000

Find out more information about FIFO method here:

https://brainly.com/question/18224446

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