Department R had 5,000 units in work in process that were 75% completed as to labor and overhead at the beginning of the period, 30,000 units of direct materials were added during the period, 32,000 units were completed during the period, and 3,000 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in,
first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was:
A) 32,450
B) 29,450
C) 31,950
D) 26,000
B
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What should a company do to improve its accounts receivable turnover rate?
a. Lower its selling prices. b. Increase its sales force. c. Give customers credit terms of 2/10, n/30 rather than 1/10, n/30. d. Reduce the number of employees working in the credit department.
The use of a discounts lost account implies that the recorded cost of a purchased inventory item is its
a. invoice price. b. invoice price plus the purchase discount lost. c. invoice price less the purchase discount taken. d. invoice price less the purchase discount allowable whether taken or not.
In setting price standards for materials and labor,
A) purchasing department must consider discounts, freight, and quality. B) personnel must consider payroll taxes, fringe benefits, and qualifications. C) it is the joint responsibility of operations, purchasing, personnel, and accounting. D) more than two of the other statements are true. E) none of the other statements are true.
Wheeler Corporation had retained earnings as of 12/31/10 of $15 million. During 2011, Wheeler's
net income was $7 million. The retained earnings balance at the end of 2011 was equal to $20 million. Therefore, A) Wheeler paid a dividend in 2010 of $5 million. B) Wheeler purchased treasury stock in 2010 for $2 million. C) Wheeler paid a dividend in 2010 of $2 million. D) Wheeler sold common stock during 2010 for $5 million.