The Caterpillar Company manufactures small garden tractors on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each tractor must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the productie process. Conversion costs are allocated evenly throughout production. Caterpillar uses FIFO. Data for the Assembly Department for April 2008 are: Work in process, beginning inventory: Direct materials (100% complete) Conversion costs (40% complete) Units started during April Work in process, ending inventory. Direct materials (100% complete) Conversion costs (80% complete) Costs for April 2008: Work in process, beginning inventory: Direct materials 400 units O 1.350 O 1.190 0 1.600 O 1.390 O None of the choices 1,200 units 250 units $100,000 $300,000 $700,000 $1,250,000 Conversion costs Direct materials costs added during April Conversion costs added during April What is the total equivalent units of conversion costs in FIFO?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The Caterpillar Company manufactures small garden tractors on a highly automated assembly line. Its costing
system uses two cost categories, direct materials and conversion costs. Each tractor must pass through the
Assembly Department and the Testing Department. Direct materials are added at the beginning of the production
process. Conversion costs are allocated evenly throughout production. Caterpillar uses FIFO.
Data for the Assembly Department for April 2008 are:
Work in process, beginning inventory:
Direct materials (100% complete)
Conversion costs (40% complete)
Units started during April
Work in process, ending inventory:
Direct materials (100% complete)
Conversion costs (80% complete)
Costs for April 2008:
Work in process, beginning inventory:
Direct materials
400 units
O 1.350
O 1.190
O 1600
O 1,390
O None of the choices
1,200 units
250 units
$100,000
$300,000
$700,000
$1,250,000
Conversion costs
Direct materials costs added during April
Conversion costs added during April
What is the total equivalent units of conversion costs in FIFO?
Transcribed Image Text:The Caterpillar Company manufactures small garden tractors on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each tractor must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Caterpillar uses FIFO. Data for the Assembly Department for April 2008 are: Work in process, beginning inventory: Direct materials (100% complete) Conversion costs (40% complete) Units started during April Work in process, ending inventory: Direct materials (100% complete) Conversion costs (80% complete) Costs for April 2008: Work in process, beginning inventory: Direct materials 400 units O 1.350 O 1.190 O 1600 O 1,390 O None of the choices 1,200 units 250 units $100,000 $300,000 $700,000 $1,250,000 Conversion costs Direct materials costs added during April Conversion costs added during April What is the total equivalent units of conversion costs in FIFO?
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