(Appendix 6A)Karmen Company Uses the FIFO Method in Its Process

question 71

Multiple Choice

(Appendix 6A) Karmen Company uses the FIFO method in its process costing system.Operating data for the Enamelling Department for the month of May appear below:
What were the equivalent units of production for conversion costs in the Enamelling Department for May?

• A) 85,000 units.
• B) 85,960 units.
• C) 93,200 units.
• D) 80,800 units.EU = 2,400 * .6 + 78,400 * 1 + 8,600 * .6 = 85,000 units

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Definitions:

Bottling Department

A specific section within a manufacturing process focused on the filling of containers with liquids for distribution and sale.

Work in Process

Inventory that includes all partially completed goods that are still in the process of production.

Equivalent Unit

A measurement used in process costing that quantifies the amount of materials or labor required to produce a single unit of output in mixed or partial stages of completion.

Materials Cost

Materials cost refers to the total expense of raw materials and components used in the manufacturing process of goods.