winkle corporation uses the fifo method in its process costing system. beginning inventory in the mixing…

winkle corporation uses the fifo method in its process costing system. beginning inventory in the mixing processing center consisted of 5,000 units, 90% complete with respect to conversion costs. ending work in process inventory consisted of 2,000 units, 60% complete with respect to conversion costs. if 10,000 units were transferred to the next processing center during the period, how many would the equivalent units for conversion costs be?\n○ a) 12,000 units\n○ b) 13,200 units\n○ c) 6,700 units\n○ d) 10,000 units

winkle corporation uses the fifo method in its process costing system. beginning inventory in the mixing processing center consisted of 5,000 units, 90% complete with respect to conversion costs. ending work in process inventory consisted of 2,000 units, 60% complete with respect to conversion costs. if 10,000 units were transferred to the next processing center during the period, how many would the equivalent units for conversion costs be?\n○ a) 12,000 units\n○ b) 13,200 units\n○ c) 6,700 units\n○ d) 10,000 units

Answer

Explanation:

Step1: Calculate units started and completed

Units started and completed = Units transferred - Beginning inventory Units started and completed = (10000 - 5000=5000)

Step2: Calculate work done on beginning inventory

Work done on beginning inventory = (5000\times(1 - 0.9)=500)

Step3: Calculate work done on ending inventory

Work done on ending inventory = (2000\times0.6 = 1200)

Step4: Calculate equivalent units

Equivalent units = Work done on beginning inventory+Units started and completed + Work done on ending inventory Equivalent units=(500 + 5000+1200 = 6700)

Answer:

C. 6,700 units