Gaba Corporation Uses the First-In, First-Out Method in Its Process

question 71

Multiple Choice

Gaba Corporation uses the first-in, first-out method in its process costing system. The Grinding Department started the month with 17,000 units in its beginning work in process inventory that were 60% complete with respect to conversion costs. An additional 60,000 units were transferred in from the prior department during the month to begin processing in the Grinding Department. During the month 70,000 units were completed in the Grinding Department and transferred to the next processing department. There were 7,000 units in the ending work in process inventory of the Grinding Department that were 10% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Grinding Department for the month?

• A) 70,700
• B) 60,500
• C) 50,000
• D) 70,000

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Definitions:

Cognitive Map

A mental representation of one's physical environment, enabling an individual to navigate through space.

Stroop Effect

A demonstration of cognitive interference where the brain's reaction time slows down when the color of a word doesn't match the name of the color.

Availability Heuristic

A cognitive shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic or decision.

Availability Heuristic

A cognitive shortcut based on easily recalled examples when judging a specific area, notion, practice, or decision-making process.