[Anonymous]

All right, I do think there is another contradiction here. Is it just me or do I keep on running into issues with equivalent units? This is the equation for FIFO equivalent units

completed units – beginning equivalent WIP +ending equivalent WIP = Equivalent units of production

Now if I read correctly, the answer explanation is actually the reverse of this equation.

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When using FIFO method of proces costing, total equivalent units of production for a given period of time is equal to the number of units…

B: IN WIP at the beginning of the preriod times the percentage of work necessary to complete the itmes, plus the number of units started during teh period, less the number of units remaining in WIP at the end of the period times the percent of work ncessary to complete the items.

Explanaton:

This answer is correct. The FIFO method determines equivalent units of production (EUP) based on the work done in the current period, which includes the work necessary to complete beginning work in process (BWIP) and the work performed on the units started in the current period. The units started during the period are either completed or they remain as ending work in process (EWIP); thus, the EUP relative to units started consists of the number of units completed plus the work done on the EWIP.