Question

FMT Manufacturing uses a process cost system to manufacture heady tools for mining industry . The folowing information pertains to operations for the month of May 2012:

Units

Beginning work in process Inventory May 1 16,000

Started in production during May 100,000

Completed production during May 92,000

Ending work in process inventory May 31 24,000

The Begining inventory was 60% complete for materials and 20% complete for conversion costs. The ending inventory was 90% complete for materials and 40% complete for conversion costs.

Costs pertaining to the month of May are as follows:

* the beginning inventory costs are materials , 54,560, direct labor 20,320 and factory overhead 15, 240

*Costs incurred during MAy are materials used 468,000 direct labor 182,880 and factory overhead 391,160

Using FIFO method, the equivalent units of production for conversion costs are?

a.) 88,800 units

b.) 85,600 units

c.) 98,400 units

d.) 95,200 units,

Answer 1