Reference no: EM132715269

Problem - Kimbeth Manufacturing uses a process cost system to manufacture dust density sensors for the mining industry. The following information pertains to operations for the month of May:

Units

Beginning work in process inventory, May 1 16,000

Started in production during May 100,000

Completed production during May 92,000

Ending work in process inventory, May 31 24,000

The beginning inventory was 60% complete for materials and 20% complete for conversion costs. The ending inventory was 90% complete for materials and 40% complete for conversion costs. Costs pertaining to the month of May are:

Beginning inventory costs: materials, $54,560; direct labor, $20,320; and factory overhead, $15,240.

Costs incurred during May: materials used, $468,000; direct labor, $182,880; and factory overhead, $391,160.

Using the first-in, first-out (FIFO) method, find the equivalent units of production for conversion costs?

a. 101,600 units.

b. 85,600 units.

c. 98,400 units.

d. 88,800 units.