Answer (D) is correct . The beginning inventory was 20% complete as to conversion costs. Hence, 12,800 EUP (16,000 units × 80%) were required for completion. EUP for units started and completed equaled 76,000 [(92,000 completed units – 16,000 units in BWIP) × 100%]. The work done on ending work-in-process totaled 9,600 EUP (24,000 units × 40%). Thus, total EUP for May are 98,400 (12,800 + 76,000 + 9,600).
Answer (A) is incorrect because This number of units omits the work done on beginning work-in-process.
Answer (B) is incorrect because This number of units omits the work done on ending work-in-process.
Answer (C) is incorrect because This number of units assumes the beginning work-in-process was 40% complete as to conversion costs.
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Using the FIFO method, Kimbeth’s equivalent units of production for conversion costs are
