Foreman Company Produces Calendars in a One- Department Process The Units Still in Process Are 100% Complete with Respect

question 12

Multiple Choice

Foreman Company produces calendars in a one- department process. The following information is available: $\begin{array}{ll}\text { Direct materials added } & \$ 30,000 \\\text { Direct labor } & \$ 20,700 \\\text { Factory overhead } & \$ 10,350\\\text { Work-in- process inventory, beginning }&-0-\\\text { Units started } & 15,000 \\\text { Units completed and transferred out } & 12,000 \\\text { Work-in- process inventory, ending } & 3,000\end{array}$ The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs. The equivalent units for materials are:

• A) 15,000
• B) 13,800
• C) 3,000
• D) 12,000

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Definitions:

Increase Price

A strategy or action where the selling price of goods or services is raised to generate higher revenue or cope with increased costs.

Volume of Sales

The total quantity of goods or services sold by a company within a specific period.

Pure Monopolists

A single seller in a market with no close substitutes for its product, giving it significant control over price.

Large-Scale Production

The manufacturing of large quantities of a product quickly and efficiently, benefiting from economies of scale.