Chapter 20, Problem E20A.31E

To determine

Determination of equivalent units of element of cost under fifo method in process costing describes the method of computing the equivalents units of various elements of cost under Process costing using FIFO cost method. Under FIFO, total units completed have to be divided into units completed from beginning work in process and units started and completed. The degree of processing actually done in the current period on these units will be taken into consideration for computing the equivalents units under FIFO.

TheEquivalent units of material cost and conversion cost under Process costing when FIFO method is applicable need to be determined.