Carver Corporation Uses the FIFO Method in Its Process Costing

question 84

Multiple Choice

Carver Corporation uses the FIFO 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

---

Definitions:

Expense Accounts

Accounts used to track money spent or costs incurred by a business in its operational activities.

Capital Accounts

Accounts that represent the ownership interest of investors in a company or partnership's total capital.

Capital Balances

Refers to the amounts recorded in the equity section of a company's balance sheet, representing the funds contributed by owners plus retained earnings.

Income Ratio

A financial metric used to evaluate a company's profitability by comparing its income to another metric, such as sales or assets, to assess efficiency and performance.