LeBlanc Company had the following department dа ta:Physical UnitsWork in process, July 1 18,000Completed and transferred out 81,000Work in process, July 31 27,000Materials are added at the beginning of the process. What is the total number ofequivalent units for materials in July?

FIFO 90,000

W/A 108,000

Explanation:

There are two method for process costying FIFO and Weighted Average (WA) as there is no indication we will do both:

The difference is that FIFO discriminate bwetween started and completed units and completed units. therefore, the complete beginning inventory is subtracted.

As the materials are added at the beginning of the period then both, beginning and ending are at 100%

completed units 81,000

ending WIP 27,000

beginning WIP (18,000)

equivalent units FIFO 90,000

complete units 81,000

ending WIP 27,000

equivalent untis Weighted average 108,000