198. CSO: 1C2b LOS: 1C2f
During December, Krause Chemical Company had the following selected data
concerning the manufacture of Xyzine, an industrial cleaner.
Production Flow Physical Units
Completed and transferred to the next department 100
Add: Ending work-in-process inventory 10 (40% complete as
to conversion)
Total units to account for 110
Less: Beginning work-in-process inventory 20 (60% complete as
Units started during December 90
All material is 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 material and $180 of conversion costs incurred. Material added during
December was $540 and conversion costs of $1,484 were incurred. Krause uses the first-
73
in, first-out (FIFO) process-costing method. The equivalent units of production used to
calculate conversion costs for December was
a. 110 units.
b. 104 units.
c. 100 units.
d. 92 units.
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