Nyman Company successfully switched to a lean production system at the beginning of March. Therefore, as shown by the summary below, there were no work in process inventories on hand at the end of the month.
-If Nyman Company uses the FIFO cost method,the March equivalent units for conversion would be:
A)150,000 units
B)190,000 units
C)172,000 units
D)168,000 units

Question

Nyman Company successfully switched to a lean production system at the beginning of March. Therefore, as shown by the summary below, there were no work in process inventories on hand at the end of the month. 
-If Nyman Company uses the FIFO cost method,the March equivalent units for conversion would be:
A)150,000 units 
B)190,000 units 
C)172,000 units 
D)168,000 units

Quizplus · Accepted Answer

FIFO method
Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 190,000 - 40,000 = 150,000
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Nyman Company Successfully Switched to a Lean Production System at the Beginning