The Accountant for Whirly Manufacturing Inc The Beginning Inventory Was 60% Complete for Materials and 20

question 95

Multiple Choice

The accountant for Whirly Manufacturing Inc. gathered the following information for the month of November: $$\begin{array} { l c } \text { Beginning WIP } & 16,000 \text { units } \\\text { Started production } & 100,000 \\\text { Completed production } & 92,000 \\\text { Ending WIP } & 24,000\end{array}$$ The beginning inventory was 60% complete for materials and 20% complete for conversion costs. The ending inventory was 90% complete for materials and 40% complete for conversion costs.
Costs pertaining to the month of November are as follows:
Beginning inventory costs are: $$\begin{array} { l r } \text { Materials } & \$ 54,560 \\\text { Direct labour } & 20,320 \\\text { Factory overhead } & 15,240 \\\text { Costs incurred during November include: } \\\text { Materials } & \$ 468,000 \\\text { Direct labour } & 182,880 \\\text { Factory overhead } & 391,160\end{array}$$
Using the FIFO method, the equivalent units of production for conversion costs are:

• A) 85,600 units
• B) 95,200 units
• C) 98,400 units
• D) 101,600 units

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Definitions:

Method of Authority

The acceptance of information or knowledge based on the credibility or expertise of the source, rather than on empirical evidence.

A Priori Method

An approach that derives conclusions through logical reasoning rather than from empirical observation, often used in philosophy and theoretical sciences.

Positivist Perspective

A philosophical approach that emphasizes observable, scientific facts as the only credible source of knowledge.

Same Outcome

Refers to the scenario where different methods or processes yield identical results or conclusions.