Asked by
Verified
Marston Corporation uses the FIFO method in its process costing system.The equivalent units of production for March for conversion costs totaled 37,500 units.The beginning work in process inventory in March consisted of 15,000 units, 60% complete with respect to conversion costs.The ending work in process inventory in March consisted of 10,000 units, 75% complete with respect to conversion costs.The number of units started during the month was:
A) 41,500 units
B) 34,000 units
C) 25,000 units
D) 72,500 units
FIFO Method
"First In, First Out," an inventory valuation method where the oldest stock is sold first, assuming that goods are sold in the order they were acquired.
Conversion Costs
The sum of labor and overhead costs required to convert raw materials into finished goods.
Equivalent Units
A method to express the amount of work done on partially completed goods in terms of fully completed units.
- Assess operating information to figure out equivalent units of output for materials and conversion expenditures.
Verified Answer
Learning Objectives
- Assess operating information to figure out equivalent units of output for materials and conversion expenditures.
Related questions
Gaba Corporation Uses the FIFO Method in Its Process Costing ...
Steven Corporation Uses the FIFO Method in Its Process Costing ...
Crimp Corporation Uses the FIFO Method in Its Process Costing ...
Equivalent Units of Production for a Process Costing System Using ...
Krumbly Corporation Uses the FIFO Method in Its Process Costing ...