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

question 75

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) $2,645

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Definitions:

Competing

Engaging in an effort to win or succeed against others, often in business, sports, or other areas of life.

Option Agreements

Legal contracts that give the holder the right, but not the obligation, to buy or sell an asset at a predetermined price and date.

Assignment of Rights

The transfer of rights or interests in a contract or property from one party to another.

Breach of Contract

An act of failing to fulfill the terms and conditions as agreed upon in a contract, leading to legal action for redress.