Answer (B) is correct . Under the FIFO method, equivalent units are determined based only on work performed during the current period. They include work performed to complete BWIP, work on units started and completed during the period, and work done on EWIP. Thus, total FIFO equivalent units of materials are BWIP 32,000 units × 40% = 12,800 Started and completed (184,000 – 32,000 in BWIP) 152,000 units × 100% = 152,000 EWIP 48,000 units × 90% = 43,200 Total equivalent units 208,000
Answer (A) is incorrect because The number of 195,200 units omits the 12,800 equivalent units of work on BWIP during the current period.
Answer (C) is incorrect because The number of 214,400 units assumes that BWIP was 40% complete.
Answer (D) is incorrect because The number of 227,200 units is based on the weighted-average method.
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Under the FIFO method, Albany Mining’s equivalent units of materials are
