Reference: 04-11
the Following Data Relate to the Forming Department

question 22

Multiple Choice

Reference: 04-11
The following data relate to the Forming Department of Jimbob Co. for a recent month: $$\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Number of } \\\text { Units }\end{array} & \begin{array} { l } \text { Conversion Costs } \\\text { (Percent Complete) }\end{array} \\\hline \text { Beginning work in process inventory } & 9,000 & 60 \% \\\hline \text { Units started into production } & 45,000 & - \\\hline \text { Units completed and transferred out } & 46,000 & - \\\hline \text { Ending work in process inventory } & 8,000 & 25 \% \\\hline\end{array}$$ All materials are added prior to the beginning of work in the Forming Department.
-Assuming that Jimbob Co. uses the FIFO method, the equivalent units of production for conversion costs would be?

• A)48,000 units.
• B)46,000 units.
• C)42,600 units.
• D)44,400 units.

Understand the importance and calculation of inventory turnover and its impact on business operations.

Recognize the tax implications and advantages of different inventory costing methods.

Acknowledge the rules and applications of internal controls in inventory management.

Understand the basic principles of inventory valuation methods including FIFO, LIFO, and the lower of cost or market.

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