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Question - The Miracle Company had 20,000 units in process on December 31, 2016 which was 80% complete as to materials but only 40% complete as to conversion costs. The company's records show 40,000 units were transferred to the Finished Goods Inventory during January 2017. On January 31, 2017, 15,000 units were on hand which were 30% complete as to conversion costs and 60% complete as to materials. What are the equivalent units of production for the conversion costs in January, assuming Miracle uses first-in, first-out (FIFO)?
A) 34,000.
B) 41,500.
C) 36,500.
D) 35,000.
Assuming that Tatum recognizes an inventory write-down as a separate income statement item, determine the amount of the loss.
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