Perfect Pigments Has 3,500 Gallons of Paint in WIP Inventory

question 203

Multiple Choice

Perfect Pigments has 3,500 gallons of paint in WIP inventory, with 80% of materials already added. The paint is 50% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?

• A)0
• B)1,050
• C)2,800
• D)1,750

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Definitions:

Work in Process

Goods that are in various stages of the production process, but which are not yet finished products.

Requisition

An official request or demand for goods or services, typically within an organizational setting.

Storeroom

A room or area where materials, goods, supplies, etc., are kept for future use.

Work in Process

Goods that are currently being manufactured but are not yet completed, representing a stage between raw materials and finished goods inventory.