Multiple Choice
Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting Department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Information for the Cutting Department for the month of May follows. Work in Process, May 1 (50,000 units, 100% complete for direct materials, 40% complete with respect to conversion costs; includes $70,500 of direct material cost; $34,050 of conversion costs) .
Work in Process, May 31 (75,000 units, 100% complete for direct materials; 20% complete for conversion costs) .
Costs incurred in May
Direct materials $ 342,000
Conversion costs $ 352,950
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If Pitt Enterprises uses the FIFO method of process costing, compute the equivalent units for direct materials and conversion respectively for May.
A) 225,000 materials; 195,000 conversion.
B) 195,000 materials; 225,000 conversion.
C) 275,000 materials; 215,000 conversion.
D) 195,000 materials; 195,000 conversion.
E) 150,000 materials; 150,000 conversion.
Correct Answer:
Verified
Correct Answer:
Verified
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