Forthefunofit Ltd Uses a Process Costing System

question 139

Multiple Choice

Forthefunofit Ltd uses a process costing system. Direct materials are added at the beginning of the process. During January, Department A had a beginning inventory of 2,000 units, 50% complete for conversion costs. During the month 14,000 units were started and there were 1,000 units in ending inventory, 40% complete for conversion costs. Using FIFO process costing, the equivalent units for direct materials for the month were:

• A) 13,600
• B) 16,600
• C) 16,000
• D) 14,000

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Definitions:

Variance

A measurement of the spread between numbers in a data set, indicating how much the numbers differ from the mean.

Standard Deviation

A metric that quantifies how spread out data points are from the mean, showing the degree of variation or dispersion within a dataset.

Negative

In the context of numbers, denotes values less than zero; in the context of feedback or results, indicates adverse outcomes or deficit.

Population Variance

A measure that indicates the dispersion or spread of all values in a population, calculated as the average of the squared differences from the mean.