The Packaging Department Is the Final Processing Department in Hector

question 75

Multiple Choice

The Packaging Department is the final processing department in Hector Manufacturing, which uses process costing.During March, 5,100 units were transferred into the Packaging Department from the Finishing Department and 4,700 units were transferred out to Finished Goods.There were 900 units in ending inventory in the Packaging Department.How many equivalent units are used to calculate the cost per equivalent unit for transferred-in costs in the Packaging Department?

• A)4,700 units
• B)5,600 units
• C)5,200 units
• D)5,100 units

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Definitions:

Tax Accounting

The area of accounting that deals with preparing tax returns and planning for future tax obligations.

Depletion

An accounting method used to allocate the cost of extracting natural resources over the period of their extraction.

Depreciation

A method of allocating the cost of a tangible asset over its useful life.

Total Depreciation Expense

The cumulative amount of an asset's cost that has been allocated as expense due to wear and tear over its useful life.