Cochrane Limited, Which Uses a Process-Costing System, Adds All Material

question 24

Multiple Choice

Cochrane Limited, which uses a process-costing system, adds all material at the beginning of production and incurs conversion costs evenly throughout manufacturing process. The information that follows relates to the period just ended:
Units started and completed: 75,000
Units in ending work-in-process inventory: 15,000, 60% complete
Which of the following choices correctly expresses the total equivalent units of production with respect to material and conversion cost? $\begin{array} { | c | c | c | } \hline & \text { Material } & \text { Conversion } \\\hline 1 & 75,000 & 75.000 \\\hline 2 & 84.000 & 84.000 \\\hline 3 & 90,000 & 81.000 \\\hline 4 & 90,000 & 84.000 \\\hline 5 & 90.000 & 90.000 \\\hline\end{array}$

• A)1
• B)2
• C)3
• D)4
• E)5

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Definitions:

Management

The process of planning, organizing, directing, and controlling resources effectively to achieve desired objectives.

Growth

The process of increasing in size, magnitude, or complexity, often used in reference to personal development, economic expansion, or biological increase.

Competence Stage

A phase in skill acquisition where individuals have gained enough knowledge and ability to perform certain tasks reliably, but not yet effortlessly.

Complacency

A feeling of smug or uncritical satisfaction with oneself or one’s achievements, often leading to a lack of effort or creativity.