What are the equivalent units of production used to compute unit conversion cost on the cost of production report for Department W? Assume the company uses FIFO.
A)16,100 units
B)13,600 units
C)15,000 units
D)18,500 units

Question

Quizplus · Accepted Answer

FIFO assumes that the first units put into production are the first units completed and transferred out. Therefore, the equivalent units of production for conversion costs are equal to the number of units completed and transferred out, which is 16,100 units.

What Are the Equivalent Units of Production Used to Compute