Garson Company Uses the FIFO Method in Its Process Costing

question 38

Multiple Choice

Garson Company uses the FIFO method in its process costing system.The Grinding Department started the month with 18,000 units in its beginning work-in-process inventory; 10% of the units were complete with respect to conversion costs.During the month,an additional 98,000 units were transferred in from the preceding department to begin processing in the Grinding Department.During the month,115,000 units were completed in the Grinding Department and transferred to the next processing department.Of the 1,000 units in the ending work-in-process inventory of the Grinding Department,20% were complete with respect to conversion costs.What were the equivalent units of production for conversion costs in the Grinding Department for the month?

• A) 81,000 units.
• B) 115,200 units.
• C) 115,000 units.
• D) 113,400 units.

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Definitions:

Deeds

Legal documents that transfer ownership of real estate from one party to another and include information like the legal description of the property and the names of the buyer and seller.

Restrictive Covenant

A clause in a contract that limits certain actions of the parties involved, often used in employment contracts and real estate agreements to restrict competition or the use of property.

Specific Performance

A legal remedy in contract disputes requiring the party who breached the contract to perform their obligations as originally agreed, instead of simply paying damages.

Adverse Possession

A legal principle allowing a person to claim ownership of land or property through continuous occupation over a certain period without the permission of the original owner.