Asked by Aleyna Akgun on Jun 15, 2024
Verified
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?
Direct Materials
Raw materials that are directly traceable to the manufacturing of a product and are an integral part of the finished product.
FIFO Method
A method of inventory valuation where the first items purchased are the first ones to be used or sold, standing for "First In, First Out."
Beginning Work
The value or quantity of work, inventory, or materials in process at the start of a period.
- Ascertain equivalent units in conversion and materials utilizing FIFO and average cost approaches.
Verified Answer
Learning Objectives
- Ascertain equivalent units in conversion and materials utilizing FIFO and average cost approaches.
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