Department R Had 5,000 Units in Work in Process That

question 142

Multiple Choice

Department R had 5,000 units in work in process that were 75% completed as to labor and overhead at the beginning of the period. During the period, 30,000 units of direct materials were added, 32,000 units were completed, and 3,000 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was

• A) 32,450
• B) 29,450
• C) 31,950
• D) 26,000

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Definitions:

Standard Deviation

An indicator of the extent of variability or spread within a dataset, showing how significantly the values deviate from the average.

Lead Time

The amount of time that passes from the start of a process until its completion, often used in supply chain and project management.

Safety Stock

Additional inventory held to protect against uncertainties in demand or supply, ensuring product availability.

Shortage Per Cycle

The average amount of inventory deficit that occurs during a specific period due to discrepancies between supply and demand.