Question:
Hollins Company uses the FIFO method to compute equivalent units. It has 2,000 units in beginning work in process, 20% complete as to conversion costs, 25,000 units started and completed, and 3,000 units in ending work in process, 30% complete as to conversion costs. All units are 100% complete as to materials. Equivalent units for materials and conversion costs are, respectively:
(a) 28,000 and 26,600.
(b) 28,000 and 27,500.
(c) 27,000 and 26,200.
(d) 27,000 and 29,600.