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Lana71 [14]
3 years ago
5

Oxford, Inc., which uses a process-cost accounting system, began operations on January 1 of the current year. The company incurs

conversion cost evenly throughout manufacturing. If Oxford started work on 3,000 units during the period and these units were 70% of the way through manufacturing, it would be correct to say that the company has:
a. 900 equivalent units of production.

b. 900 in-process units.

c. 2,100 completed units.

d. 3,000 physical units in production.

e. 3,000 equivalent units of production.
Business
1 answer:
Inessa [10]3 years ago
8 0

Answer:

Option C

2,100 completed units.

Explanation:

<em>Equivalent Units E.U) are notional whole units which represent incomplete work and are used to apportion costs between between work in progress and completed work. </em>

Equivalent units are computed  as  follows:

Equivalent Units = Degree of completion (%) × units

equivalent unit of conversion cost = 70%  × 3,000 = 2,100 units

       

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