Problem:
The information below was obtained from the records of one of the departments of Cushing Company for the month of August. The company uses the FIFO method in its process costing system.
Labor and Overhead
Units
Percent Complete
Work in process, August 1..................................
10,000
25%
Units completed and transferred out..................
75,000
Work in process, August 31................................
20,000
50%
All materials are added at the beginning of the process.
The equivalent units for materials for the month of August are: