(Appendix 4A)Oxyrom Company uses the FIFO method in its process costing system.Operating data for the Brazing Department for the month of November appear below:

What were the equivalent units of production for conversion costs in the Brazing Department for November?
A) 49,040 units.
B) 50,200 units.
C) 43,200 units.
D) 48,280 units.

Question

(Appendix 4A)Oxyrom Company uses the FIFO method in its process costing system.Operating data for the Brazing Department for the month of November appear below:

What were the equivalent units of production for conversion costs in the Brazing Department for November?
A) 49,040 units. 
B) 50,200 units. 
C) 43,200 units. 
D) 48,280 units.

Quizplus · Accepted Answer

To calculate equivalent units of production for conversion costs, we add the number of units completed during the month and the equivalent units for work in process at the end of the month.

Units completed during November = 44,000 
Equivalent units of conversion costs for work in process at the end of November = 4,280 (27,000 x 0.16) 
Total equivalent units of production for conversion costs = 44,000 + 4,280 = 48,280.

Therefore, the answer is D.

(Appendix 4A)Oxyrom Company Uses the FIFO Method in Its Process