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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

Respuesta :

Answer:

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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