Figure 5-11
Gill Ltd Beginning Inventory Was 70 Per Cent Complete

question 53

Multiple Choice

Figure 5-11
Gill Ltd. adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for March 2004 are as follows:
$\begin{array}{lrrr}&&\text { Costs }\\&\text { Units } & \text { Materials } & \text { Conversion } \\\text { Work in progress, March 1 } & 25,000 & £ 68,750 & £ 167,650 \\\text { Started during March } & 100,000 & 300,000 & 903,350 \\\text { Work in nrogress March } 31 & 10000 & &\end{array}$ Beginning inventory was 70 per cent complete. Ending inventory was 40 per cent complete.
-Refer to Figure 5-11. How many equivalent units for conversion costs would there be for Gill Ltd. in March using the FIFO method?

• A)100,000 units
• B)111,500 units
• C)125,000 units
• D)101,500 units

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Definitions:

Primacy Effect

The tendency to remember and give more weight to information that is encountered first in a series.

Recency Effect

The phenomenon where more recently presented information is better remembered and has a stronger influence on judgment than older information.

Transference

In psychotherapy, the phenomenon where patients project feelings or attitudes from past relationships onto the therapist.

Halo Effect

A cognitive bias where the perception of one positive trait leads to the assumption of other positive traits in an individual.