Beginning Work in Process Consists of 7,000 Units, 55% Complete

question 82

Multiple Choice

Beginning work in process consists of 7,000 units, 55% complete. 50,000 units were started and ending work in process is 5,000 units, 25% complete. Normal spoilage is equal to 10% of the units inspected. The inspection point occurs at the 20% point and 7,000 units were rejected. Direct materials are added at the 50% point, direct labour at 30% and overhead is applied uniformly. The costs per equivalent unit are: direct material $1.00; direct labour $1.50; overhead $2.00.
The cost of the ending work in process is:

• A) $2,500
• B) $2,850
• C) $2,700
• D) $4,000

Grasp the significance of safety stock in mitigating stockout risks and how to calculate it.

Recognize the application and implications of single-period inventory models.

Comprehend different inventory systems and terminology used in inventory management.

Understand the relationship between present value, future value, and time period.

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Definitions:

Extended Care Agency

An organization that provides long-term medical and non-medical services to individuals who require assistance with daily living activities due to chronic illness or disability.

Unilateral Neglect

A condition often resulting from brain damage where a patient is unaware of and does not respond to one side of their body or the environment.

Nonblanchable Redness

Skin redness that does not lighten or turn white when pressure is applied, indicating possible tissue damage or pressure ulcer.

Impaired Skin Integrity

A condition in which the normal structure and function of the skin are damaged, leading to breaks, cuts, or lesions.