The Debits to Work-In-Process for Department #2 for the Month

question 59

Multiple Choice

The debits to Work-in-Process for Department #2 for the month of April of the current year, together with information concerning production, are presented below. All direct materials come from Department #1. The units completed include the 1,200 in process at the beginning of the period. Department #2 uses FIFO costing.

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What are the equivalent units of production for conversion costs?

• A) 500.
• B) 5,500.
• C) 5,900.
• D) 6,400.

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Definitions:

Crowding Out Effects

Refers to a situation where increased government spending leads to a reduction in private sector investment due to rising interest rates.

ARRA

The American Recovery and Reinvestment Act of 2009, a legislative package aimed at stimulating the U.S. economy during the financial crisis through investment in infrastructure, education, health, and renewable energy.

Policy

A deliberate system of principles to guide decisions and achieve rational outcomes, often enacted by a governmental or corporate entity.

Short Run

A period in economics during which at least one input, such as factory capacity, is fixed and cannot be changed.