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 as follows:

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

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

Question

Using the FIFO method, Kimbeth's equivalent units of production for conversion costs are

A. 98,400 units

B. 88,800 units

C. 95,200 units

D. 85,600 units

Mountain Corporation manufactures cabinets but outsources the handles. Eight handles are needed for a cabinet, with assembly requiring 30 minutes of direct labor per unit. Ending finished goods inventory is planned to consist of 50% of projected unit sales for the next month, and ending handles inventory is planned to be 80% of the requirement for the next month's projected unit output of finished goods.

Mountain's projected unit sales:

October

4,600

November

5,000

December

4,200

January

6,000

Mountain's ending inventories in units at September30:

Finished goods

3,800

Handles

16,000

Question

The number of units that Mountain finished during December is

A. 3,000

B. 5,000

C. 4,200

D. 5,100