On March 1, Portland Company had 20,000 units of work in process in Department A, which were 100% complete as to material costs and 40% complete as to conversion costs.During March, 150,000 units were started in Department A and 160,000 units were completed and transferred to Department B.Work in process on March 31 was 100% complete as to material costs and 50% complete as to conversion costs.By what amount would the equivalent units for conversion costs for the month of March differ if the FIFO method were used instead of the weighted-average method?
A) 10,000 decrease.
B) 8,000 decrease.
C) 6,000 decrease.
D) 5,000 decrease.
E) 4,000 decrease.
Correct Answer:
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