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Direct Disk Drive Company operates a computer disk manufacturing plant

Accounting Nov 22, 2020

Direct Disk Drive Company operates a computer disk manufacturing plant. Direct materials are added at the end of the process. The following data were for August 20X5: 
Work in process, beginning inventory 150,000 units Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (90% complete) 
Transferred in during current period 450,000 units Completed and transferred out 400,000 units 
Work in process, ending inventory 200,000 units Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (65% complete) 
Calculate equivalent units for conversion costs using the FIFO method. 
O 401,500 units O 300,000 units 
0 395,000 units 
O 350,000 units O none of the above. 

Expert Solution

So, the correct option is 3rd "395,000".

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