Cohen Company Is Trying to Determine the Equivalent Units for Conversion

question 50

Multiple Choice

Cohen Company is trying to determine the equivalent units for conversion costs with 5000 units of ending work in process at 80% completion and 45000 units that are 100% complete as to materials. There are no beginning units in the department. Materials are added at the beginning of the process and conversion costs occur evenly throughout the entire production period. What is the equivalent units of production for conversion costs for the current period?

• A) 50000.
• B) 49000.
• C) 4000.
• D) 44000.

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Definitions:

Voting Stock

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.

Equity Changes

Refers to variations in the owners' equity in a business over time due to earned income, distribution of profits, investments, and withdrawals.

Trading Securities

Financial instruments that are purchased and held primarily for sale in the short term to generate income on short-term price differences.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and stockholders' equity at a specific point in time.