(Appendix 4A)Assuming that the company uses the FIFO method,what are the equivalent units of production for conversion costs for the refining Department for the month?
A) 119,100 units.
B) 111,950 units.
C) 115,250 units.
D) 114,000 units.

Question

Quizplus · Accepted Answer

The equivalent units of production for conversion costs for the refining department can be calculated as follows:
Equivalent Units of Production = Units completed and transferred out + (Ending work in process inventory x Percentage of completion)
Units completed and transferred out = 100,000
Ending work in process inventory for conversion costs = 12,500
Percentage of completion for conversion costs = (30,000 - 12,500) / 30,000 = 58.33%
Equivalent Units of Production = 100,000 + (12,500 x 58.33%) = 115,250 units.

Therefore, the best choice is C.

(Appendix 4A)Assuming That the Company Uses the FIFO Method,what Are