America Productions Uses a Process Costing System

question 128

Multiple Choice

America Productions uses a process costing system. Its Belting Department's Work in Process inventory account at March 31 consists of 7,000 units that are 100% complete with respect to materials and 70% complete with respect to conversion costs. If the total conversion cost in the Work in Process inventory account is $552,000 and the cost per equivalent unit for conversion costs is $6.00, how many units were completed and transferred out?

• A) 92,000 units
• B) 85,000 units
• C) 87,100 units
• D) 99,000 units

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Definitions:

Largest Net Recipient

A term most often used in economics or finance, referring to the entity or country that receives the most in net transfers or payments relative to what it provides.

Colonization

The act of establishing control over a foreign land and its people, often involving economic exploitation and cultural domination.

Britain

A geographical term that can refer to the island of Great Britain (comprising England, Scotland, and Wales) or, more broadly, the United Kingdom.

India

A country in South Asia, known for its diverse cultures, languages, and traditions, and as the world's largest democracy by electorate.