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

question 21

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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What are the equivalent units of production for materials during the period?

• A) 12,000.
• B) 13,000.
• C) 14,000.
• D) 15,000.

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Definitions:

Marginal Utility

The supplementary value or utility derived from the consumption of one more unit of a good or service.

Market Price

The existing value at which an asset or service could be sold or bought.

Consumption

The usage of goods and services by households.

Labor Supply Decisions

The determination by individuals regarding how much they are willing to work, influenced by wages, working conditions, and personal preferences.