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The following unit data were assembled for the assembly process of the Super Co. for the month of April. Direct materials are added at the beginning of the process. Conversion costs are added uniformly over the production process. The company uses the FIFO method.UnitsBeginning work in process, (60% completed) 5,000Units started in April 48,000Ending work in process, (30% completed) 4,000The number of equivalent units produced with respect to direct materials costs is:_________a. 53,000b. 49,000c. 43,000d. 48,000

Answer :

jepessoa

Answer:

d. 48,000

Explanation:

Beginning work in process, (60% completed) 5,000

  • direct materials 100%
  • conversion costs 60%

Units started in April 48,000

Ending work in process, (30% completed) 4,000

  • direct materials 100%
  • conversion costs 30%

under FIFO method, net actual production of units respect to direct materials = units started in April 48,000

The units in beginning inventory were already 100% complete regarding direct materials because they are added at the beginning of the production process. The same for the units in ending inventory.

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