The Finishing Department Had 5,000 Incomplete Units in Its Beginning

question 69

Multiple Choice

The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing.
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What are the equivalent units of production for the conversion costs during the period?

• A) 14,500.
• B) 15,100.
• C) 16,500.
• D) 17,100.

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Definitions:

Product Promotion

A marketing strategy aimed at increasing consumer awareness of a product or brand, generating sales, and creating brand loyalty.

Product Differentiation

The method of differentiating a product or service from competitors in the marketplace to increase its appeal to a specified target audience.

Monopolistically Competitive

A market structure in which many companies sell products that are similar but not identical, allowing for some degree of market power and product differentiation.

Economic Profits

Economic profits are the excess returns over the total costs, including both explicit and implicit costs.