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:

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.

c

explanation:

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