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1 December, 21:46

Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department had 3,000 liters in beginning work in process inventory (30% complete). During the period, 71,000 liters were completed. The ending work in process was 5,000 liters (70% completed). What is the total equivalent units for direct materials (using the FIFO method) if materials were added at the beginning of the process

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  1. 1 December, 22:30
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    73,000 units

    Explanation:

    The computation of the direct material using the FIFO method is shown below:

    = Units started and completed units * completion percentage + closing work in process units * completion percentage

    = (71,000 units - 3,000 units) * 100% + 5,000 units * 100%

    = 68,000 units + 5,000 units

    = 73,000 units

    We simply applied the above formula so the material equivalent unit could come
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