Richards Corporation Uses the FIFO Method of Process Costing

question 207

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 conversion.

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

---

Definitions:

Measurement Error

refers to the difference between the actual value and the measured value caused by imprecision or inaccuracies in data collection or analysis.

Job Breadth

The extent of responsibilities and variety of tasks included in a job.

Individual Difference Moderators

Variables that influence how different people respond to the same situation or treatment.

Individual Preferences

The specific likes, dislikes, desires, and needs that vary from one person to another, influencing their behavior and choices.