First Corporation Adds All Materials at the Beginning of Production

question 8

Multiple Choice

First Corporation adds all materials at the beginning of production and incurs conversion costs evenly throughout the manufacturing process. The company completed 70,000 units during the year and had 12,000 units in process at December 31, 20% complete with respect to conversion cost. Calculate the equivalent units of direct materials and conversion for the year.

• A)Materials, 70,000; conversion, 70,000.
• B)Materials, 70,000; conversion, 2,400.
• C)Materials, 72,400; conversion, 72,400.
• D)Materials, 82,000; conversion, 72,400.
• E)Materials, 82,000; conversion, 82,000.

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Definitions:

Collectivism-group

A sociopolitical system that emphasizes the priority of group goals over individual goals and the importance of cohesion within social groups.

Cohesiveness

The degree to which members of a group or team are united in pursuing their common goals and how much they are attracted to the group or team.

GLOBE Model

A research framework used for understanding the relationship between culture and societal, organizational, and leadership effectiveness across the world.

Collectivism-societal

An orientation valuing the goals, well-being, and views of the group over those of the individual, prevalent in various cultures and societies.