Answer the Following Questions Using the Information Below

question 16

Multiple Choice

Answer the following questions using the information below:
The Morgan Models company manufacturers replica plastic airplane and motorized vehicle models. During October, the firm's Assembly Department started production of 60,000 models. During the month, the firm completed 66,000 models, and transferred them to the Finishing Department. The firm ended the month with 22,000 models in ending inventory. There were 28,000 models in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is used by Morgan. Beginning work in process was 25% complete as to conversion costs, while ending work in process was 50% complete as to conversion costs.
Beginning inventory:
Manufacturing costs added during the accounting period:

-What were the equivalent units for conversion costs during October?

• A)21,000
• B)62,000
• C)70,000
• D)87,000

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