Department a Had 5,000 Units in Work in Process That

question 59

Multiple Choice

Department A had 5,000 units in work in process that were 60% completed as to labor and overhead at the beginning of the period; 34,000 units of direct materials were added during the period; 31,000 units were completed during the period; and 2,000 units were 80% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories.
The number of equivalent units of production for conversion costs for the period was

• A) 29,600
• B) 32,000
• C) 32,400
• D) 34,000

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Definitions:

Manufacturing Overhead

All manufacturing costs that are not directly related to the production of a product, such as factory rent, utilities, and maintenance.

Indirect Materials

Materials used in the production process that are not directly traceable to individual products, like lubricants and cleaning supplies.

Indirect Labor

Workers who support the production process but do not directly contribute to the manufacturing of the product, such as maintenance and supervisory staff.

Inventoriable Costs

Expenses directly tied to the production of goods, including materials and labor, capitalized as inventory until sold.