Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows:

-Using the FIFO method, the equivalent units for May for materials are:
A) 82,400 units
B) 104,000 units
C) 107,200 units
D) 108,000 units

Question

Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows:

-Using the FIFO method, the equivalent units for May for materials are:

-Using the FIFO method, the equivalent units for May for materials are:
A) 82,400 units 
B) 104,000 units 
C) 107,200 units 
D) 108,000 units

Quizplus · Accepted Answer

The Answer of  Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows:

-Using the FIFO method, the equivalent units for May for materials are:
A) 82,400 units 
B) 104,000 units 
C) 107,200 units 
D) 108,000 units

Cherrington Company Uses a Process Costing System