Hollins Company uses the FIFO method to compute equivalent units. It has 2,000 units in beginning work

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Hollins Company uses the FIFO method to compute equivalent units. It has 2,000 units in beginning work in process, 20% complete as to conversion costs, 25,000 units started and completed, and 3,000 units in ending work in process, 30% complete as to conversion costs. All units are 100% complete as to materials.

Equivalent units for materials and conversion costs are, respectively:

(a) 28,000 and 26,600.

(b) 28,000 and 27,500.

(c) 27,000 and 26,200.

(d) 27,000 and 29,600.

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