$Problem/Answer 2

Lawton Company produces canned tomato soup in a single processing department and has a process costing system in which it uses the weighted-average method. The company sold 250,000 units in the month of January. Data concerning inventories follow: Units Inventory at January 1: Work in process None Finished goods 75,000 Inventory at January 31: Work in process (conversion 75% complete) 16,000 Finished goods 60,000 What were the equivalent units for conversion costs for January? A) 235,000 B) 247,000 C) 251,000 D) 253,000