What were the equivalent units for conversion costs for February if beginning inventory was 70% complete as to conversion costs and ending inventory

ACCOUNTING

Multiple Choice

The Rest-a-Lot Chair Company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 75,000 chairs. During the month, the firm completed 85,000 chairs and transferred them to the Finishing Department. The firm ended the month with 10,000 chairs in ending inventory. All direct materials costs are added at the beginning of the production cycle. Weighted-average costing is used by Rest-a-Lot.


What were the equivalent units for conversion costs for February if beginning inventory was 70% complete as to conversion costs and ending inventory was 40% complete as to conversion costs?

a. 89,000

b. 75,000

c. 85,000

d. 95,000

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