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Question
The following data are available for a company's manufacturing activities:
| Beginning goods in process inventory | 5,000 units, 1/4 of the labor added this period |
| Units started and completed | 15,000 |
| Ending goods in process inventory | 6,000 units, 1/2 of the labor added this period |
Assume the company uses FIFO inventory. If materials are added when the production process begins and direct labor is applied uniformly throughout the process, what are the equivalent units for direct materials and for direct labor, respectively?
A. 16,250; 19,250
B. 16,250; 21,750
C. 21,000; 19,250
D. 19,250; 18,750
E. 21,000; 22,250
Answer
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