A Department Adds Raw Materials to a Process at the Beginning

question 151

Multiple Choice

A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 60,000 units were started into production in January; and there were 15,000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for conversion costs for the month of January?

• A) 45,000 equivalent units.
• B) 54,000 equivalent units.
• C) 51,000 equivalent units.
• D) 60,000 equivalent units.

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Definitions:

Egyptian Pounds

The official currency of Egypt, denoted as EGP, and divided into smaller units called piastres.

Exchange Rates

The value of one currency for the purpose of conversion to another, indicating how much one currency is worth in terms of another.

Japanese Yen

The official currency of Japan, commonly used in international finance transactions.

South African Rand

The currency of South Africa, abbreviated as ZAR, used as medium of exchange in South Africa.