First Corporation Adds All Materials at the Beginning of Production

question 8

Multiple Choice

First Corporation adds all materials at the beginning of production and incurs conversion costs evenly throughout the manufacturing process. The company completed 70,000 units during the year and had 12,000 units in process at December 31, 20% complete with respect to conversion cost. Calculate the equivalent units of direct materials and conversion for the year.

• A)Materials, 70,000; conversion, 70,000.
• B)Materials, 70,000; conversion, 2,400.
• C)Materials, 72,400; conversion, 72,400.
• D)Materials, 82,000; conversion, 72,400.
• E)Materials, 82,000; conversion, 82,000.