Chapter 3, Problem 1CMA

During December, Krause Chemical Company had the following selected data concerning the manufacture of Xyzine, an industrial cleaner:

All materials are added at the beginning of processing in this department, and conversion costs are added uniformly during the process. The beginning work in process inventory had $120 of raw materials and $180 of conversion costs incurred. Materials added during December were $540, and conversion costs of $1,484 were incurred. Krause uses the first-in, first-out (FIFO) process cost method.

The equivalent units of production used to compute conversion costs for December were:

1. a. 110 units.
2. b. 104 units.
3. c. 100 units.
4. d. 92 units.