Abraci Co$.$ uses process costing. It reported the following accounting information: work in process on January $1,20$X$1$ at $2,000$ units, all materials, $40\%$ converted; processed and transferred out at $20,000$ units; work in process on January $31,20$X$1$ at $4,000$ units, all materials, $60\%$ converted. Which of the following are Abraci Co$.$s equivalent units of production if the company uses FIFO method?

Question $7$Answer

$20,000$ units for materials and $20,000$ units for conversion costs

$21,600$ units for materials and $22,000$ units for conversion costs

$24,000$ units for materials and $22,400$ units for conversion costs

$22,000$ units for materials and $21,600$ units for conversion costs