The Taylor Company Uses a Process Costing System Equivalent Units for Conversion Costs Are
A) 207,800

question 108

Multiple Choice

The Taylor Company uses a process costing system.Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process.The company uses the average costing method.The following data are available for one of its accounting periods: $\begin{array}{lr}&\text { Units }\\\text { Beginning work in process } & 26,000& \text { (70 percent complete for } \\&&\text { conversion costs) } \\\text { Units started } & 180,000 \\\text { Units transferred out } & 191,000 \\\text { Ending work in process } & 15,000 &\text { (60 percent complete for } \\&& \text { conversion costs) }\end{array}$


Equivalent units for conversion costs are

• A) 207,800.
• B) 192,200.
• C) 181,800.
• D) 200,000.

---

Definitions:

Entrepreneurs

Individuals who organize, operate, and assume the risk for a business venture.

Preoccupied

Describes being absorbed or engrossed in thoughts or concerns, often to the extent of being unaware of one's surroundings or other matters.

Risk

The potential for loss or the uncertainty regarding the outcome of an action or decision.

United States

A country located primarily in North America, composed of 50 states, a federal district, five major self-governing territories, and various possessions.