Use the Following Information for the Next 10 Questions

question 23

Multiple Choice

Use the following information for the next 10 questions.
Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040. Direct materials are added at the beginning of the process. Additionally:
-Using the FIFO method, the equivalent units of material were

• A) 1,200
• B) 1,100
• C) 850
• D) 1,450

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Definitions:

Journal Entry

A record in accounting that documents a business transaction in the general ledger, indicating the accounts and amounts to be debited and credited.

Accounts Payable

Short-term liabilities of a company, representing amounts owed to creditors for goods and services received but not yet paid for.

Interest Revenue

Earnings received for interest.

Fiscal Year

A 12-month period used for accounting purposes and the preparation of financial statements, which may or may not align with the calendar year.