The following unit data were assembled for the heating process of Morgan Processing Inc.for the month of August.Direct materials are added at the beginning of the process.Conversion costs are added uniformly over the production process.The company uses the FIFO process costing method.
-The number of equivalent units produced by Morgan Processing with respect to conversion costs is
A)43,700.
B)45,700.
C)48,200.
D)50,200.

Question

The following unit data were assembled for the heating process of Morgan Processing Inc.for the month of August.Direct materials are added at the beginning of the process.Conversion costs are added uniformly over the production process.The company uses the FIFO process costing method.  
-The number of equivalent units produced by Morgan Processing with respect to conversion costs is
A)43,700. 
B)45,700. 
C)48,200. 
D)50,200.

Quizplus · Accepted Answer

Equivalent units for conversion costs are calculated by adding the units completed and transferred out to the equivalent units in ending work in process (WIP) inventory. Without specific data on units completed, units in ending WIP, and the stage of completion for conversion costs, it's impossible to calculate or validate the correct answer. However, based on the options provided, if B is identified as the correct answer, it suggests that the calculation based on given data (not provided in the question) results in 45,700 equivalent units for conversion costs.

The Following Unit Data Were Assembled for the Heating Process