Answer: 1483000
Explanation:
By using the FIFO method, the equivalent units for the conversion cost would be calculated thus:
Beginning work in process = 80% × 85000 = 68000
Unit started and completed = 1,320,000 - 85000 = 1235000
Ending work in process = 80% × 225,000 = 180000
Total equivalent unit = 68000 + 1235000 + 180000
= 1483000
The equivalent units for the conversion cost is 1,483,000 units.
In accordancw with the FIFO method, the equivalent units for the conversion cost would be calculated as :
Beginning work in process = 80% * 85,000
Beginning work in process = 68,000
Unit started and completed = 1,320,000 - 85,000
Unit started and completed = 1,235,000
Ending work in process = 80% * 225,000
Ending work in process = 180,000
Total equivalent unit = Beginning work in process + Unit started and completed + Ending work in process
Total equivalent unit = 68,000 + 1,235,000 + 180,000
Total equivalent unit = 1,483,000
Therefore, the Option A is correct.
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