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19 February, 10:21

Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of 8,000 units that were 75% complete with respect to conversion costs. Ending work in process inventory consisted of 7000 units that were 60% complete with respect to conversion costs. If 16,000 units were transferred to the next processing department during the period, the equivalent units of production for conversion cost would be:

17,000 units

14,200 units

18,000 units

17,000 units

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  1. 19 February, 13:23
    0
    Equivalent unit of conversion = 14200 units

    so correct option is (b) 14200 units

    Explanation:

    given data

    Beginning inventory = 8,000 units

    complete = 75%

    Ending work = 7000 units

    complete = 60%

    transferred = 16,000 units

    to find out

    equivalent units of production for conversion cost

    solution

    we get Equivalent unit of conversion that is express as

    Equivalent unit of conversion = 8000 * 25% + 8000 * 100% + 7000 * 60%

    Equivalent unit of conversion = 8000 * 0.25 + 8000 * 1 + 7000 * 0.60

    Equivalent unit of conversion = 14200 units

    so correct option is (b) 14200 units
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