Department E Had 4,000 Units in Work in Process That

question 55

Multiple Choice

Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. During the period, 14,000 units of direct materials were added at a cost of $28,700 and 15,000 units were completed. At the end of the period, 3,000 units were 75% completed. All materials are added at the beginning of the process. Direct labor was $32,450, and factory overhead was $18,710. The number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories was

• A) 15,650
• B) 14,850
• C) 14,150
• D) 14,650

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Definitions:

Deferrals

Accounting method that involves postponing the recognition of certain revenues or expenses until a later accounting period to match them with the period they affect.

Accruals

Expenses and revenues that have been incurred or earned but not yet recorded in the accounts.

Accounting Principle

A rule or guideline in accounting that dictates how financial transactions and elements should be recorded and reported.

Adjusting Journal Entries

Adjusting journal entries are made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.