C is corrent. The requirement is to calculate the equivalent units produced using the first-in, first-out method. C is corrent because the equivalent units are calculated as units completed (140,000) minus equivalent units in beginning inventory (7,000 = 10,000 × 70%) plus the equivalent units in ending inventory (5,000 = 20,000 × 25%). Therefore, the equivalent units are equal to 138,000 (140,000 – 7,000 + 5,000).
A is incorrect because the results are calculated in an inappropriate manner.
A is incorrect because the results are calculated in an inappropriate manner.
D is incorrect because the results are calculated in an inappropriate manner.
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