Mikey's Mugs Uses the FIFO Method of Process Costing

question 46

Multiple Choice

Mikey's Mugs uses the FIFO method of process costing. The company's ending work in process inventory consisted of 12,000 units that were 40% complete and had incurred 80% of the materials costs. The direct materials cost per equivalent unit was $2.40, and the conversion cost per equivalent unit was $3.30. What is the amount of cost Mikey would assign to ending work in process inventory?

• A) $27,360
• B) $38,880
• C) $46,800
• D) $68,400

Understand the components and significance of SMART objectives in sales calls.

Master the process of developing a customer profile and its role in sales planning.

Comprehend the purpose and creation of a customer benefit plan.

Recognize the importance of identifying a product or service’s features, advantages, and benefits (FAB).

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Definitions:

Gas Prices

The cost per unit of gasoline, which fluctuates based on factors such as crude oil prices, taxes, demand, and refinery capabilities.

Equilibrium Quantity

At the market price, the supply of goods or services is equivalent to the demand.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.

Supply

The total amount of a specific good or service that is available to consumers at a given time.