(Appendix 6A)Herston Company Uses the FIFO Method in Its Process

Multiple Choice

(Appendix 6A) Herston Company uses the FIFO method in its process costing system.The beginning work-in-process inventory in a particular department consisted of 6,000 units,two-thirds complete with respect to conversion costs.During the month,42,000 units were started and 40,000 units were completed and transferred out of the department.The company had 40,000 equivalent units of production for conversion costs.Which of the following represents the ending work-in-process inventory in the department? (Do not round intermediate calculations. )

A) 8,000 units,25% complete with respect to conversion costs.
B) 0 units.
C) 8,000 units,50% complete with respect to conversion costs.
D) 4,000 units,100% complete with respect to conversion costs.Therefore,40,000 - 36,000 = 4,000 EU in EI.EI consists of 6,000 + 42,000 - 40,000 = 8,000 units 50% complete (4,000/8,000) .