Marston Corporation Uses the FIFO Method in Its Process Costing

question 8

Multiple Choice

Marston Corporation uses the FIFO method in its process costing system.The equivalent units of production for March for conversion costs totaled 37,500 units.The beginning work in process inventory in March consisted of 15,000 units,60% complete with respect to conversion costs.The ending work in process inventory in March consisted of 10,000 units,75% complete with respect to conversion costs.The number of units started during the month was:

• A) 41,500 units
• B) 34,000 units
• C) 25,000 units
• D) 72,500 units

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Definitions:

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