Question

Uses the FIFO method to compute equivalent units of production. It has unit costs of 10 for materials and20 for conversion costs. If there are 2,500 units in ending work in process, what is the total cost of the ending work in process?

Answer 1

The FIFO method is used to compute equivalent units of production. Additional information is needed to calculate the total cost of the ending work in process.

Step-by-step explanation:

The FIFO (First-In-First-Out) method is used to compute equivalent units of production. Equivalent units of production refer to the number of completed units that could be obtained from the materials and conversion costs incurred during a specific period.

To compute the equivalent units of production using the FIFO method, you need to calculate the equivalent units of work done for units started and completed during the period, as well as the equivalent units of work done for units in ending work in process.

In this case, since the question only provides information about the units in ending work in process (2,500 units), you would need additional information such as the percentage of completion for the ending work in process to calculate the equivalent units and determine the total cost of the ending work in process.