Beginning WIP is 45% complete and ending WIP is 10% complete as to conversion costs. Materials are added at the beginning of the process. If a company uses FIFO costing, the total equivalent units for materials in the period will equal:.

a. equivalent units to complete beginning inventory and equivalent units in ending inventory.

b. equivalent units to complete beginning inventory units started into the process this period.

c. none of these units started into the process this period plus units in beginning inventory

In the FIFO Costing, the total equivalent units for materials in the period will equal units started into the process and units in beginning inventory.

In accounting, First In First Out (FIFO) is method of manufacturing where the first assets been purchased or acquired are first disposed in the manufacturing process.

So, in the FIFO Costing, the total equivalent units for materials in the period will equal units started into the process and units in beginning inventory.

Therefore, the Option C. is correct because the answer is not listed.

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c. none of these

units started into the process this period plus units in beginning inventory

Explanation:

In FIFO , the physical units are divided between the beginning units, units started in process and the ending units. But as all the materials is added at the beginning of the process so the FIFO physical units would be divided between the units started into the process this period plus units in beginning inventory and hence the equivalent units for materials will be calculated.

So the best choice is option c.

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