Regina Manufacturing Uses the FIFO Method of Process Costing

question 31

Multiple Choice

Regina Manufacturing uses the FIFO method of process costing. The production report for the Curing Department, where the materials are added at the beginning of the period, for September was as follows: The number of equivalent units for conversion costs during the period was:

• A)13,500
• B)16,500
• C)12,300
• D)14,700

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Definitions:

Standard Rate

A predetermined rate often used for allocating costs to activities or products, based on budgeted or historical data.

Completed Unit

A unit of product that has undergone the entire production process and is ready for sale or distribution.

Direct Labor Time Variance

The difference between the actual hours worked by employees at the actual labor rate and the standard hours worked at the standard labor rate, used to measure efficiency and productivity in production.

Standard Costs

Predetermined or estimated costs for materials, labor, and overhead used for cost control and budgeting purposes.