Sanger Corp

question 119

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 direct materials cost using the FIFO method?

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

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Definitions:

Stock Repurchase

A company's buyback of its own shares from the marketplace, reducing the number of outstanding shares, which can increase the value of remaining shares.

Investment

The process of distributing funds or resources in anticipation of earning profits or income.

Profitable

A financial status indicating that the revenue of an entity is greater than its expenditures over a specified period, resulting in a net gain.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of a company.