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Tutorial 16427

The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and over...

Question:

The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the FIFO costing method. The following data are available for one of its accounting periods

                                                         Units      

Beginning work in process                    26,000   (70 percent complete for conversion costs)

Units started                                      180,000

Units transferred out                           191,000

Ending work in process                         15,000   (60 percent complete for conversion costs)

Equivalent units for conversion costs are

a)            207,800.

b)            192,200.

c)            181,800.

d)            200,000. 

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