The Miracle Company had 20,000 units in process on December 31, 2016 which was 80% complete as to materials but only 40% complete as to conversion costs. The company's records show 40,000 units were transferred to the Finished Goods Inventory during January 2017. On January 31, 2017, 15,000 units were on hand which were 30% complete as to conversion costs and 60% complete as to materials. What are the equivalent units of production for the conversion costs in January, assuming Miracle uses first-in, first-out (FIFO)? a. 34,000. b. 35,000. c. 36,500. d. 41,500.

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter5: Process Costing
Section: Chapter Questions
Problem 4EA: There were 1,700 units in beginning inventory that were 40% complete with regard to conversion....
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The Miracle Company had 20,000 units in process on December 31,
2016 which was 80% complete as to materials but only 40% complete as
to conversion costs. The company's records show 40,000 units were
transferred to the Finished Goods Inventory during January 2017. On
January 31, 2017, 15,000 units were on hand which were 30% complete
as to conversion costs and 60% complete as to materials.
What are the equivalent units of production for the conversion costs in
January, assuming Miracle uses first-in, first-out (FIFO)?
a. 34,000.
b. 35,000.
c. 36,500.
d. 41,500.
Transcribed Image Text:The Miracle Company had 20,000 units in process on December 31, 2016 which was 80% complete as to materials but only 40% complete as to conversion costs. The company's records show 40,000 units were transferred to the Finished Goods Inventory during January 2017. On January 31, 2017, 15,000 units were on hand which were 30% complete as to conversion costs and 60% complete as to materials. What are the equivalent units of production for the conversion costs in January, assuming Miracle uses first-in, first-out (FIFO)? a. 34,000. b. 35,000. c. 36,500. d. 41,500.
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