Intask Company uses the FIFO method in its process costing system.Beginning inventory in the mixing department consisted of 6,000 units that were 75% complete with respect to conversion costs.Ending work in process inventory consisted of 5,000 units that were 60% complete with respect to conversion costs.If 12,000 units were transferred to the next processing department during the period,the equivalent units for conversion cost would be:
A)12,500 units
B)10,500 units
C)13,500 units
D)13,000 units

Question

Quizplus · Accepted Answer

FIFO method
Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 12,000 - 6,000 = 6,000
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Intask Company Uses the FIFO Method in Its Process Costing