Garson Corporation Uses the FIFO Method in Its Process Costing

question 72

Multiple Choice

Garson Corporation uses the FIFO method in its process costing system. The Grinding Department started the month with 18,000 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. An additional 98,000 units were transferred in from the prior department during the month to begin processing in the Grinding Department. During the month 115,000 units were completed in the Grinding Department and transferred to the next processing department. There were 1,000 units in the ending work in process inventory of the Grinding Department that were 20% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Grinding Department for the month?

• A)81,000
• B)115,200
• C)115,000
• D)113,400

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Definitions:

Socio-economic Status

A measure of an individual or family's economic and social position in relation to others, based on income, education, and occupation.

Conscientiousness

A personality trait characterized by organization, responsibility, perseverance, and carefulness.

Neuroticism

A character trait marked by feelings of nervousness, apprehension, irritability, unease, envy, annoyance, jealousy, and feeling isolated.

Five-factor Model

A theory that describes personality using five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.