Xeno, Inc Operates a Process Costing System and Uses the FIFO

question 19

Multiple Choice

Xeno, Inc. operates a process costing system and uses the FIFO method. Beginning work in process consists of 1,000 units, 30% complete. Ending work in process is 15% complete, and direct materials are added at the 20% point. The equivalent units of production for materials are 14,000 and for conversion costs are 18,000.
The number of units started this month was:

• A) 15,000
• B) 18,000
• C) 36,000
• D) 37,000

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Definitions:

Spot Market

A public financial market in which financial instruments or commodities are traded for immediate delivery.

Futures Market

A financial market where participants can buy and sell futures contracts, which are agreements to buy or sell an asset at a future date at a price agreed upon today.

Simultaneous

Occurring, operating, or done at the same time.

Position

In finance, a position refers to the amount of a particular security, commodity, or currency held or owned by an individual or entity.