During December, Krause Chemical Company had the following selected data concerning the manufacture of Xyzine, an industrial cleaner:

All materials are added at the beginning of processing in this department, and conversion costs are added uniformly during the process. The beginning work in process inventory had $120 of raw materials and $180 of conversion costs incurred. Materials added during December were $540, and conversion costs of $1,484 were incurred. Krause uses the first-in, first-out (FIFO) process cost method.

The equivalent units of production used to compute conversion costs for December were:

a. 110 units.

b. 104 units.

c. 100 units.

d. 92 units.

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Production Flow Physical Units Completed and transferred to the next department Add: Ending work in process inventory Total units to account for Less: Beginning work in process inventory Units started during December 100 10 (40% complete as to conversion) 110 20 (60% complete as to conversion) 90