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Department C is the first stage of Cohen Corporation's production cycle. The following equivalent unit information is available for conversion costs for the month of September:




Beginning work-in-process inventory (20% complete) 85,000
Started in September 1,460,000
Completed in September and transferred to Department D 1,320,000
Ending work-in-process inventory (80% complete) 225,000


Using the FIFO method, the equivalent units for the conversion cost calculation are:

Multiple Choice
1,483,000
1,320,000
1,303,000
1,415,000

Respuesta :

Answer: 1483000

Explanation:

By using the FIFO method, the equivalent units for the conversion cost would be calculated thus:

Beginning work in process = 80% × 85000 = 68000

Unit started and completed = 1,320,000 - 85000 = 1235000

Ending work in process = 80% × 225,000 = 180000

Total equivalent unit = 68000 + 1235000 + 180000

= 1483000

Tundexi

The equivalent units for the conversion cost is  1,483,000 units.

In accordancw with the FIFO method, the equivalent units for the conversion cost would be calculated as :

Beginning work in process = 80% * 85,000

Beginning work in process = 68,000

Unit started and completed = 1,320,000 - 85,000

Unit started and completed = 1,235,000

Ending work in process = 80% * 225,000

Ending work in process = 180,000

Total equivalent unit = Beginning work in process + Unit started and completed + Ending work in process

Total equivalent unit = 68,000 + 1,235,000 + 180,000

Total equivalent unit = 1,483,000

Therefore, the Option A is correct.

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