Department C is the first stage of Cohen Corporation's production cycle. The following equivalent unit information is available for conversion costs for the month of September:
Beginning work-in-process inventory (20% complete) 82000
Started in September 1410000
Completed in September and transferred to Department D 1220000
Ending work-in-process inventory (80% complete) 272000
Using the FIFO method, the equivalent units for the conversion cost calculation are:_______.
a. 1,421,200
b. 1,220,000
c. 1,203,600
d. 1,355,600
e. None of the above

Question

02-04-2021
Business

Answered

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Department C is the first stage of Cohen Corporation's production cycle. The following equivalent unit information is available for conversion costs for the month of September:
Beginning work-in-process inventory (20% complete) 82000
Started in September 1410000
Completed in September and transferred to Department D 1220000
Ending work-in-process inventory (80% complete) 272000
Using the FIFO method, the equivalent units for the conversion cost calculation are:_______.
a. 1,421,200
b. 1,220,000
c. 1,203,600
d. 1,355,600
e. None of the above

Sagot :

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amcool amcool · Answer 1 · 2021-04-03T20:21:44-04:00

Answer:

The correct option is a. 1,421,200.

Explanation:

Note: See the attached excel file for the calculation of the equivalent units for the conversion cost calculation.

In the attached excel file, the following working is used:

Units started and completed = Completed in September and transferred to Department D - Beginning work-in-process inventory = $1,220,000 - $82,000 = $1,138,000

From the attached excel file, we have:

Total equivalent units = $1,421,200

Therefore, the correct option is a. 1,421,200.

Sagot :

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