Answer:
If the FIFO method is used, the equivalent units of production during the month equal:_________122,000
Explanation:
<u>FIFO Equivalent Units </u>
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
<u>Ending Inventory 20,000 20 20 4000 4000</u>
<u>FIFO Equiv. Units 122,000 122,000</u>
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<em>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.</em>