Use the following information for the next 8 questions.
Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities:
-Using the FIFO method, the number of equivalent units of conversion costs was
A) 14,400
B) 14,550
C) 14,850
D) 14,700

Question

Use the following information for the next 8 questions.
Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: 
-Using the FIFO method, the number of equivalent units of conversion costs was
A) 14,400 
B) 14,550 
C) 14,850 
D) 14,700

Quizplus · Accepted Answer

The number of equivalent units of conversion costs using the FIFO method is 14,400. This is because the FIFO method assumes that the first units produced are the first units sold, so the units that are still in process at the end of the period are assumed to be the most recently produced units. In this case, there are 14,400 units that are still in process at the end of the period, so these are the units that are considered to be equivalent units of conversion costs.

Use the Following Information for the Next 8 Questions