Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of

Question

4 years ago

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Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of

8,000 units that were 75% complete with respect to conversion costs. Ending work in process inventory consisted of 7000 units that were 60% complete with respect to conversion costs. If 16,000 units were transferred to the next processing department during the period, the equivalent units of production for conversion cost would be: Multiple Choice A) 17,000 units B) 14,200 units C) 18,000 units D) 17,000 units

Business

1 answer:

solmaris [256] · Answer 1 · 2021-11-25T22:15:31+03:00

Answer:

B) 14,200 units

Explanation:

Equivalent unit of conversion = (8000*25% + 8000*100% + 7000*60%)

= 14200 units

Therefore, The equivalent units of production for conversion cost would be 14200 units.