Notes Company Manufactures Generic Notebooks The Equivalent Units for Conversion Costs Are:
A) 62,000
B)

question 161

Multiple Choice

Notes Company manufactures generic notebooks. Material is introduced at the beginning of the process in the Printing department. Conversion costs are applied uniformly throughout the process. The weighted- average method of product costing is used. Data for the Printing department for the month of June follow: $$\begin{array}{l}\text { Work- in- process inventory, June } 1\\\begin{array} { l r } \text { Units } & 15,000 \text { units } \\\text { Direct materials (100\% complete) } & \$ 34,000 \\\text { Conversioncosts( } 30 \% \text { complete) } & \$ 14,000 \\& \\\text { Units started in June } & 65,000 \text { units } \\\text { Units completed in June } & 62,000 \\\text { units Work-in-process inventory,June 30 } & 18,000 \\\text { units } & \\\quad ( 100 \% \text { complete as to materials } & \\\text { and } 60 \% \text { complete as to conversioncosts) } \\& \\\text { Direct materials added in June } & \$ 285,000\\\text { Conversioncostsadded in June } & \$ 210,000\end{array}\end{array}$$ The equivalent units for conversion costs are:

• A) 62,000
• B) 72,800
• C) 80,000
• D) 68,300

---

Definitions:

Tax Savings

Reductions in income tax obligations as a result of deductions, credits, or other allowances.

Common Stock

A type of equity security that represents ownership in a corporation, entitling holders to vote at shareholder meetings and receive dividends.

Annuity

A monetary product offering a stable payout to an individual, predominantly aimed at supplying income to retirees.

Periodic Payments

Payments made regularly over a specified period, such as monthly rent or loan repayments.