Use the Following Information for the Next 2 Questions

question 86

Multiple Choice

Use the following information for the next 2 questions.
Xeno, Inc. operates a process costing system and uses the FIFO method. Beginning work in process consists of 1,000 units, 30% complete. Ending work in process is 15% complete, and direct materials are added at the 20% point. The equivalent units of production for materials are 14,000 and for conversion costs are 18,000.
-The number of units in ending work in process was

• A) 37,000
• B) 14,000
• C) 18,000
• D) 22,000

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Definitions:

Diagnosis-Related Groups (DRGs)

Diagnosis-Related Groups (DRGs) are a system to classify hospital cases into one of originally 467 groups, intended to identify the "products" that a hospital provides, for the purpose of Medicare and health insurance programs.

Capitated Rates

A payment arrangement for healthcare service providers where they are paid a set amount for each enrolled person assigned to them, regardless of whether that person seeks care.

Unnecessary Costs

Expenses that could be avoided without a detrimental effect on the quality of goods or services offered.

Selective Breeding

The process of breeding plants or animals for specific genetic traits, with the aim of producing offspring with desired characteristics.