Matrix Inc

question 86

Multiple Choice

Matrix Inc. calculates cost for an equivalent unit of production using the FIFO method.Total equivalent units for conversion under the FIFO method are calculated to be:

• A)126,000 equivalent units.
• B)114,000 equivalent units.
• C)90,000 equivalent units.
• D)102,000 equivalent units.
• E)96,000 equivalent units.

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Definitions:

Direct Materials Cost

The cost of raw materials directly used in the production of goods, easily traceable to the final product.

Work in Process

Inventory consisting of items that are in the production process but are not yet completed.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or job orders, calculated before the period begins based on estimated costs.

Manufacturing Overhead

Indirect factory-related costs that are incurred when producing a product, such as utilities, depreciation, and salaries of maintenance personnel.