Answer (D) is correct . Units transferred out of a department are by definition 100% complete for purposes of conversion costs for that department. The equivalent units of production (EUP) for conversion for units transferred out is therefore 100 (100 units × 100%). Under the FIFO method, the EUP of ending work-in-process must also be included. This number is 4 (10?units × 40%), which, added to the 100 transferred out, gives an EUP of 104. This is the EUP that would be used under the weighted-average method, but for FIFO beginning work-in-process must be taken out. For conversion, this is 12?units (20 units × 60%), making a total FIFO-basis EUP for the month of 92 (104 – 12).
Answer (A) is incorrect because The EUP for materials is 110 units.
Answer (B) is incorrect because The EUP using the weighted-average method is 104 units.
Answer (C) is incorrect because The number of units transferred out is 100 units.
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Under the first-in, first-out (FIFO) method, Krause’s equivalent units of production used to calculate conversion costs for December was
