Cherrington Company Uses a Process Costing System

Multiple Choice

Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows:



-Using the FIFO method, the equivalent units for May for conversion costs are:

A) 85,600 units
B) 88,800 units
C) 95,200 units
D) 98,400 units