Fulton Corporation Adds All Materials at the Beginning of Production

question 45

Multiple Choice

Fulton Corporation adds all materials at the beginning of production and incurs conversion cost evenly throughout manufacturing. The company completed 70,000 units during the year and had 12,000 units in process at year end, 20% complete with respect to conversion cost. Equivalent units for the year total:

• A) materials, 70,000; conversion, 70,000.
• B) materials, 70,000; conversion, 2,400.
• C) materials, 72,400; conversion, 72,400.
• D) materials, 82,000; conversion, 72,400.
• E) materials, 82,000; conversion, 82,000.

---

Definitions:

Deltoid

A sizable, three-sided muscle enveloping the shoulder joint tasked with raising the arm and providing the shoulder with its mobility.

Biceps Brachii

A large muscle of the upper arm responsible for flexing the elbow and rotating the forearm, well known for its two heads or points of origin.

Serratus Anterior

A muscle located on the side of the chest that assists in the upward movement of the arm and in breathing.

Lateral Flexion

The bending of the neck or body toward the right or left side.