Saturn Corporation
Begining Invent Ouy (30\% Complete as to Material $60 \%$

question 214

Multiple Choice

Saturn Corporation
Begining invent ouy (30\% complete as to Material B and $60 \%$ complete for                                   700                                  units
conversion

Started this cycle                                                                                                                                    2,000                               units
Ending inventory (50\% complete as to Material B and $80 \%$ complete for conversion)                       500                                  units



$\begin{array}{lc}\text { Beginuing inventory costs: } & \\\text { Material A } &\$ 14,270 \\\text { Material B } &5,950 \\\text { Conversion } & 5,640 \\\text { Current Period costs: } & \\\text { Material A } & \$ 40,000\\\text { Material B } &70,000 \\\text { Conversion } & 98,100\end{array}$


Material A is added at the start of production,while Material B is added uniformly throughout the process.
Refer to Saturn Corporation Assuming a FIFO method of process costing,compute EUP for conversion.

• A)2,240
• B)2,180
• C)2,280
• D)2,700

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Definitions:

Warranty Repairs

Services offered for free by a manufacturer or seller to correct defects or malfunctions within a certain period after purchase.

Warranty Expense

Costs that a company anticipates or incurs when repairing or replacing products under warranty to meet its customers' expectations or contractual obligations.

Installment Note

A debt instrument that requires a series of periodic payments, typically consisting of both principal and interest.

Annual Payments

Periodic payments made once every year.