Cargin Company Uses the FIFO Method in Its Process Costing

question 29

Multiple Choice

Cargin Company uses the FIFO method in its process costing system.The Assembly Department started the month with 15,000 units in its beginning work in process inventory that were 50% complete with respect to conversion costs.An additional 71,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department.There were 9,000 units in the ending work in process inventory of the Assembly Department that were 30% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?

• A)77,000
• B)79,700
• C)65,000
• D)72,200

---

Definitions:

Renewable Natural Resources

Things such as forests, water in reservoirs, and wildlife that are capable of growing back or building back up (renewing themselves) if they are harvested at moderate rates.

Property Rights

Legal rights to possess, use, and dispose of assets, including tangible and intangible property.

Open Ocean

The vast expanse of seawater that is not in close proximity to any landmass, often referred to as the high seas.

Overfishing

The depletion of fish stocks due to fishing at a rate that is unsustainable.