Jolly Company uses the FIFO method in its process costing system.Beginning inventory in the mixing processing center consisted of 4,000 units,75% complete with respect to conversion costs.Ending work in process inventory consisted of 3,000 units,60% complete with respect to conversion costs.If 12,000 units were transferred to the next processing center during the period,the equivalent units for conversion costs would be:
A)13,200 units
B)10,800 units
C)12,000 units
D)13,000 units

Question

Quizplus · Accepted Answer

FIFO method
Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 12,000 - 4,000 = 8,000
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Jolly Company Uses the FIFO Method in Its Process Costing