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

question 165

Multiple Choice

Marston Corporation uses the first-in, first-out method in its process costing system. The equivalent units of production for March for conversion costs totaled 37,500 units. The beginning work in process inventory in March consisted of 15,000 units, 60% complete with respect to conversion costs. The ending work in process inventory in March consisted of 10,000 units, 75% complete with respect to conversion costs. The number of units started during the month was:

• A) 41,500 units
• B) 34,000 units
• C) 25,000 units
• D) 72,500 units

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Definitions:

Long-Term Hardships

Prolonged periods of difficulty or suffering that individuals or communities face, often due to economic downturns or other adverse conditions.

Productivity Growth

The rate at which a company or country can produce more goods or services with the same amount of labor and resources.

U.S.

The United States of America is a country consisting of 50 states, a federal district, five major self-governing territories, and various possessions, known for its significant influence in global political, cultural, and economic affairs.

Percent

A mathematical term used to describe a number as a fraction of 100.