A Firm Had 600 Units in Its Work in Process

question 73

Multiple Choice

A firm had 600 units in its work in process inventory at the beginning of a month.Of these units,30 percent were complete with respect to labor,materials,and overhead.The firm transferred 5,000 units to the finished goods inventory during the month.It had 500 units of which 40 percent were complete and still in process at the end of the month.Equivalent production for the month was

• A) 5,680 units.
• B) 5,380 units.
• C) 5,200 units.
• D) 5,180 units.

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Definitions:

Control Account

A summary account in the general ledger that consolidates the total amounts recorded in subsidiary ledgers.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, rent, and salaries for non-direct labor.

Raw Materials Inventory

The total cost of all components and raw materials that a company has in stock, which are intended to be used in the production of finished goods.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.