Cherrington Company Uses a Process Costing System

question 23

Multiple Choice

Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows:



-Using the FIFO method, the equivalent units for May for conversion costs are:

• A) 85,600 units
• B) 88,800 units
• C) 95,200 units
• D) 98,400 units

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Definitions:

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