Sanger Corp

question 96

Multiple Choice

Sanger Corp.uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Beginning inventory for January consisted of 1,000 units that were 40% completed.10,000 units were started into the process during January.On January 31,the inventory consisted of 500 units that were 70% completed.What would be the equivalent units for conversion cost using the FIFO method?

• A)10,000
• B)10,450
• C)10,850
• D)11,000

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Definitions:

Standard Work Practices

Standard work practices refer to the set of procedures and guidelines designed to consistently achieve optimal performance, quality, and safety in an organization's operations.

Poka-yoke

A mistake-proofing technique used in manufacturing and software development to prevent or correct errors by designing the manufacturing process, equipment, or software in a way that avoids errors or makes them immediately evident.

JIT Systems

Just-In-Time inventory management systems designed to increase efficiency and decrease waste by receiving goods only as they are needed in the production process.

Variability

The extent to which data points in a statistical distribution or set differ from each other and from their average.