Ricardo Corporation Uses the First-In, First-Out Method in Its Process

Multiple Choice

Ricardo Corporation uses the first-in, first-out method in its process costing system. During June, 36,000 units were completed in Department M. Of this total, 6,000 were in the beginning work in process and the remainder were started and completed during the month. The work in process at June 1 was 40% complete with respect to conversion costs. Materials are added at the beginning of the process. A total of 8,000 units were in work in process at June 30; these units were 80% complete with respect to conversion costs. The equivalent units of production for conversion costs for June is closest to:

A) 32,800 units
B) 33,600 units
C) 40,000 units
D) 36,400 units