A company employs a process costing for its two-department manufacturing operation using the first-in, first-ount (FIFO) inventory method. When units are completed in Department 1, they are transferred to Department 2 for completion. Inspection takes place in Department 2 immediately before the direct materials are added, when the process is 70% complete with respect to conversion. The specific identification method is used to account for lost units.
A company employs a
Physical Units
Beginning inventory (60% complete with respect to conversion) 20,000
Units transferred in from Department 1 180,000
Units completed in Department 2 during the month 170,000
Units found to be defective at inspection 5,000
Ending inventory (80% complete with respect to conversion) 25,000
- The equivalent units for direct materials for the current month would be?
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