Richards Corporation Uses the FIFO Method of Process Costing

question 80

Multiple Choice

Richards Corporation uses the FIFO method of process costing.The following information is available for October in its Fabricating Department: Units:
Beginning Inventory: 80,000 units,60% complete as to materials and 20% complete as to conversion.
Units started and completed: 250,000.
Units completed and transferred out: 330,000.
Ending Inventory: 30,000 units,40% complete as to materials and 10% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $37,200.
Costs in beginning Work in Process - Conversion: $79,700.
Costs incurred in October - Direct Materials: $646,800.
Costs incurred in October - Conversion: $919,300.

-Calculate the equivalent units of materials.

• A)250,000
• B)317,000
• C)294,000
• D)333,000
• E)342,000

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Definitions:

Trend Analysis

A comparison of a single firm’s present performance with its own past performance, preferably for more than two years.

Financial Ratios

Quantitative measures derived from financial statements used to evaluate a company's financial performance, health, and risks.

Previous Years

Referring to the years before the current one, often used in contexts of analysis, comparison, or financial performance evaluation.

Pro Forma Financial Statements

Forward-looking financial documents that project a business’s future financial performance based on certain assumptions.