Ohio Inc. uses a process-cost accounting system and began operations on January 1 of the current year. It incurs conversion costs evenly throughout manufacturing. If Ohio started 3,000 units during the period and those units were 70% complete, the company would have 900 units still in the manufacturing process (3,000 units started - 70% of 3,000 units completed).

1. Ohio, 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 Ohio
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:
a. 900 equivalent units of production.
b. 900 in-process units.
c. 2,100 completed units.
d. 3,000 physical units in production.
e. 3,000 equivalent units of production.
Solution
it would be correct to say that the company has 900 Units in process. (3,000 - 70% of 3,000 )
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