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25 April, 10:28

Oxford, Inc., which uses a process-cost accounting system, began operations on January 1 of the current year. The company incurs conversion cost evenly throughout manufacturing. If Oxford started work on 3,000 units during the period and these units were 70% of the way through manufacturing, it would be correct to say that the company has:

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  1. 25 April, 11:03
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    3,000 physical units in the production

    Explanation:

    Given that,

    Oxford started work on 3,000 units during the period

    Units were 70% of the way through manufacturing

    Therefore,

    Physical units in the production = 3,000 units

    Equivalently units of production is as follows:

    = 70% of Physical units in the production

    = 0.7 * 3,000 units

    = 2,100 units

    Hence, it would be correct to say that the company has 3,000 physical units in the production.
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