Chapter 17, Problem 17.18MCQ

Sepulveda Corporation uses a process costing system to manufacture laptop PCs. The following information summarizes operations for its VeryLite model during the quarter ending March 31, Year 1:

	Units	Direct Materials
Work-in-process inventory, January 1	100	$ 60,000
Started during the quarter	500
Completed during the quarter	400
Work-in-process inventory, March 31	200
Costs added during the quarter		$840,000

Beginning work-in-process inventory was 50% complete for direct materials. Ending work-in-process inventory was 75% complete for direct materials. What were the equivalent units for direct materials for the quarter using the FIFO method?

1. 1. 450
2. 2. 500
3. 3. 550
4. 4. 600