Question: Ivanhoe Inc. started the period with an opening Work-in-Progress (WIP) Inventory of 1350 units that were 100% complete with regard to Direct Materials (DM) and

Ivanhoe Inc. started the period with an opening Work-in-Progress (WIP) Inventory of 1350 units that were 100% complete with regard to Direct Materials (DM) and 45% complete with regard to Conversion Costs (CC). During the period, the company started 6750 new units, and had completed and removed 6150 units from WIP inventory. 1950 units in ending inventory were 100% complete with respect to Direct Materials and 55% complete with respect to Conversion Costs. What will be the total equivalent units of Direct Materials if the First-In, First-Out (FIFO) method is used, and what would be the answer if the Weighted-Average method is used? 8100 for FIFO and 6750 for Weighted-Average 6150 for FIFO and 8100 for Weighted-Average 8100 for FIFO and 6150 for Weighted-Average 6750 for FIFO and 8100 for Weighted-Average
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
