The equivalent units for labor and overhead for the month of August are:

A) 85,000 units
B) 95,000 units
C) 87,500 units
D) 82,500 units

FIFO method
Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 75,000 - 10,000 = 65,000 Reference: APP05A-Ref9
(Chapter 5S)Sumptuous Beer Corporation manufactures beer in two departments, Fermenting and Bottling.In the Fermenting Department, ingredients are placed in a large vat and fermented for three days.The beer is then transferred over to Bottling where it is further purified and bottled.Sumptuous uses a FIFO process cost system to collect costs in both departments.
On May 1, the Fermenting Department had 32,000 gallons (units)in process.These gallons were 100% complete with respect to materials (ingredients)and 80% complete with respect to conversion cost.During May, Fermenting started an additional 460,000 gallons into production.On May 31, Fermenting had 18,000 gallons in work in process.These gallons were 100% complete with respect to materials and 60% complete with respect to conversion cost.