Carver Corporation Uses the First-In, First-Out Method in Its Process

question 119

Multiple Choice

Carver Corporation uses the first-in, first-out method in its process costing system. The Assembly Department started the month with 2,000 units in its beginning work in process inventory that were 60% complete with respect to conversion costs. An additional 66,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 9,000 units in the ending work in process inventory of the Assembly Department that were 50% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month?

• A) 59,000
• B) 62,300
• C) 63,500
• D) 73,000

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Definitions:

Scientific Measurement

The process of obtaining a quantitative description of the properties of an object or event using instruments that adhere to a standard unit.

Estimate

A calculation or judgment made about a quantity or value when exact figures are not available or necessary.

Significant Figure

A digit within a number that contributes to its precision, indicating the accuracy of measurements.

Scientific Notation

A method of expressing numbers as a product of a coefficient and a power of ten, used for very large or small numbers.