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yarga [219]
3 years ago
15

Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding D

epartment: Units:
Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $43,000.
Costs in beginning Work in Process - Conversion: $48,850.
Costs incurred in February - Direct Materials: $287,000.
Costs incurred in February - Conversion: $599,150.
Calculate the equivalent units of conversion.
A) 165,000
B) 130,250
C) 140,000
D) 144,000
E) 110,000
Business
1 answer:
Lynna [10]3 years ago
8 0

Answer:

B) 130,250

Explanation:

The computation of the equivalent units of conversion is shown below:

= Opening work in process units × remaining percentage + units started and completed units × completion percentage + ending work in process units × completion percentage

= 25,000 units × 45% + 110,000 × 100% + 30,000 × 30%

= 11,250 + 110,000 + 9,000

= 130,250 units

Hence, the correct option is B.

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