During December, Krause Chemical Company had the following selected data concerning the manufacture of Xyzine, an industrial cleaner.
All material is added at the beginning of processing in this department, and conversion costs are added uniformly during the process. The beginning work-in-process inventory had $120 of raw material and $180 of conversion costs incurred. Material added during December was $540 and conversion costs of $1,484 were incurred. Krause uses the first-in, first-out (FIFO) process-costing method. The equivalent units of production used to calculate conversion costs for December was:
A) 110 units.
B) 104 units.
C) 100 units.
D) 92 units.
Correct Answer:
Verified
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