Montgomery Company Makes Fabric-Covered Hatboxes

question 113

Multiple Choice

Montgomery Company makes fabric-covered hatboxes.The company began July with 500 boxes in process that were 100 percent complete as to cardboard,80 percent complete as to cloth,and 60 percent complete as to conversion costs.During the month,3,300 boxes were started.On April 30,350 boxes were in process (100 percent complete as to cardboard,70 percent complete as to cloth,and 55 percent complete as to conversion costs) .Using the FIFO method,what are equivalent units for cloth?

• A)3,295
• B)3,395
• C)3,450
• D)3,595

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Definitions:

Content Services

Online services that provide users with digital content, such as news, music, video, and more, either for free or on a subscription basis.

Outsourcing

Obtaining a good or service from an external supplier, often in international markets.

Make-Or-Buy Decision

The strategic choice between producing a good or service internally or purchasing it from an external supplier.

Operational Risk

A measure of a firm’s inability to document the work remote employees do, describe the different situations they might face, and direct their responses in each scenario.