The Finishing Department Had 5,000 Incomplete Units in Its Beginning

question 44

Multiple Choice

The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing.
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How many units were transferred-out during the period?

• A) 12,000.
• B) 13,000.
• C) 18,000.
• D) 20,000.

Understand the principles behind selecting an inventory cost formula and its impact on cost matching.

Recognize the treatment and reporting requirements for inventory write-downs and recoveries.

Understand the concept and implications of consigned goods.

Know the disclosure requirements for changes in inventory cost formulas.

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Definitions:

Fatal Overdose

An excessive and lethal dose of a substance, typically drugs or medication, leading to death.

Heroin

Is an opioid drug made from morphine, a natural substance taken from the seed pod of various opium poppy plants, highly addictive and illegal.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, known for its potential for addiction and abuse.

LSD

A powerful psychedelic drug known for altering perception, mood, and various cognitive processes.