Question:
Laurie Company uses the FIFO method in its process costing system. Department A is the first stage of Laurie Companys production process. The following information is available for conversion costs for the month of May for Department A:
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Units
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Work in process, January 1 (conversion 40% complete)
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8,000
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Started in May
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40,000
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Transferred to Department Two during May
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38,000
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Work in process, ending (conversion 25% complete)
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10,000
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The equivalent units of production for conversion costs for the month are:
A) 42,000 units
B) 38,000 units
C) 44,000 units
D) 36,000 units