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Leni [432]
3 years ago
12

. Materials are added at the beginning of a process in a process costing system. The beginning Work-in-Process Inventory was 30%

complete as to conversion costs. Using first-in, first-out (FIFO) process costing, the total equivalent units for material are A. beginning inventory this period for this process.B. units started this period in this process.C. units started this period in this process plus the beginning inventory.D. units started this period in this process plus 70% of the beginning inventory this period.
Business
1 answer:
natita [175]3 years ago
3 0

Answer:

B. units started this period in this process

Explanation:

The equivalent units is the metric to account cost for the period cost.

With stared during the period, the formula will be:

Started during the period - incomplete ending + incomplete beginning

Because the materials are added entirely at the beginning, the beginning WIP has all the materials already added. Those unit do not recieve any material therefore, none are incomplete.

Also, the ending is complete as well, so there is no incomplete portion

leaving the formula with:

started during the period - 0 + 0 = started during the period

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