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The Baker Corporation makes wreaths in two departments: Forming and Decorating. Forming began the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the weighted average method of process costing. Costs in the Forming Department

are as follows:

Beginning Work in Process Costs:

Material $1,000

Conversion 1,500

Current Costs:

Material $3,200

Conversion 5,045

The Decorating Department had 600 wreaths in process at the beginning of the

month that were 80 percent complete as to material and 90 percent complete as

to conversion. The department had 300 units in ending Work in Process that

were 50 percent complete as to material and 75 percent complete as to

conversion. Decorating uses the FIFO method of process costing, and costs

associated with Decorating are:

Beginning WIP Inventory:

Transferred In $1,170

Material 4,320

Conversion 6,210

Current Period:

Transferred In ?

Material $67,745

Conversion 95,820

Refer to Baker Corporation. Assume 8,000 units were transferred to Decorating.

Compute the number of equivalent units as to costs in Decorating for the

transferred- in cost component.

Select one:

a. 8,000

b. 8,600

c. 7,700

d. 7,400

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