The Taylor Company uses a process costing system.Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process.The company uses the FIFO costing method.The following data are available for one of its accounting periods
-Equivalent units for conversion costs of Taylor Company are
A)207,800.
B)192,200.
C)181,800.
D)200,000.

Question

The Taylor Company uses a process costing system.Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process.The company uses the FIFO costing method.The following data are available for one of its accounting periods  
-Equivalent units for conversion costs of Taylor Company are
A)207,800. 
B)192,200. 
C)181,800. 
D)200,000.

Quizplus · Accepted Answer

Equivalent units for conversion costs are calculated based on the number of units processed during a period adjusted for the degree of completion. Without specific data on the units processed, their stage of completion, or the method of calculation (FIFO or weighted average), it's impossible to determine the correct answer. However, based on the question's format, it seems C) 181,800 is presented as the correct answer, but keep in mind that in real scenarios, detailed calculations are required to arrive at this figure.

The Taylor Company Uses a Process Costing System