Question

Assume there were 6,000 units in beginning work in process, 60% complete. 20,000 units were completed during the month. Ending work in process is 40% complete, which is equivalent to 3,200 units for conversion costs. Materials are added at the beginning of the process. The standard cost method is used. Assume that conversion costs are $122,100 for the month, and the equivalent unit cost for conversion is $5.50. The ending work in process is 80% complete, and the beginning work in process consisted of 2,000 units, 40% complete. The company completed 17,000 units. What is the number of whole units in the ending work in process under the FIFO method?A) 6,000 unitsB) 6,500 unitsC) 7,500 unitsD) 5,200 units

Answer 1

B) 6,500 units

Step-by-step explanation:

Beginning WIP = 6,000 units

The units are 60% complete.

further 20,000 units are added which are 40% complete at the end of the process.

The total finished units at the end of the process are 6,500 units.