Assume There Were 6,000 Units in Beginning Work in Process

question 50

Multiple Choice

Assume there were 6,000 units in beginning work in process, 60% complete. 20,000 units were completed during the month. Ending work in process is 40% complete, which is equivalent to 3,200 units for conversion costs. Materials are added at the beginning of the process. The FIFO method is used.
The number of equivalent units of conversion costs is:

• A) 23,200
• B) 17,680
• C) 19,600
• D) 21,280

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Definitions:

General Accounting System

The underlying system and processes used to record, classify, and report on financial transactions and conditions, ensuring accuracy and compliance with regulations.

Manufacturing Company

A type of business that produces finished goods from raw materials through the use of labor, machinery, and equipment, oftentimes in a systematic and standardized process.

Job Order Production

A production system where products are manufactured based on specific orders rather than mass production.

Mass Production

The large-scale manufacturing of goods using standardized designs and assembly-line techniques to achieve greater efficiency.