Department a Had 1,000 Units in Work in Process That

question 66

Multiple Choice

Department A had 1,000 units in Work in Process that were 60% completed at the beginning of the period at a cost of $7,000.During the period, 4,000 units of direct materials were added at a cost of $8,200, and 4,500 units were completed.At the end of the period, 500 units were 40% completed.All materials are added at the beginning of the process.Direct labor was $28,700 and factory overhead was $4,510.The cost of the 500 units in process at the end of the period if the first-in, first-out method is used to cost inventories was

• A)$3,240
• B)$5,175
• C)$2,569
• D)$2,607

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Definitions:

Price

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

Segment Representation

The act of depicting or representing specific subgroups or segments within a broader market or population.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.

Market Entry

The process by which a firm enters into a new market to compete and offer goods or services.