Anzalone Corporation Adds Raw Materials to Production at the Beginning

question 114

Multiple Choice

Anzalone Corporation adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for May 2018 are as follows: $$\begin{array} { | l | r | r | r | } \hline & & { \text { Costs } } \\\hline & \text { Units } & \text { Materials } & { \text { Conversion } } \\\hline \text { Work in process, May 1 } & 25,000 & \$ 68,750 & \$ 167,650 \\\hline \text { Started during May } & 100,000 & 300,000 & 903,350 \\\hline \text { Work in process, May 31 } & 10,000 & & \\\hline\end{array}$$ Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete. How many equivalent units for materials would there be for Anzalone Corporation in May using the FIFO method?

• A)110,000 units
• B)100,000 units
• C)125,000 units
• D)119,000 units

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Definitions:

Interindustry Competition

Competition that occurs between companies in different industries or sectors offering substitute goods or services.

Oligopolistic Industries

Market structures characterized by a small number of firms that dominate the industry, leading to competition primarily on factors other than price, such as innovation or advertising.

Product Price

The amount of money required to purchase a good or service, determined by factors such as production costs, demand, and supply.

Herfindahl Index

A gauge of company sizes within their market and a marker for the degree of rivalry between them.