Ricardo Corporation Uses the FIFO Method in Its Process Costing

question 55

Multiple Choice

Ricardo Corporation uses the FIFO method in its process costing system.During June,36,000 units were completed in Department M.Of this total,6,000 were in the beginning work in process and the remainder were started and completed during the month.The work in process at June 1 was 40% complete with respect to conversion costs.Materials are added at the beginning of the process.A total of 8,000 units were in work in process at June 30; these units were 80% complete with respect to conversion costs.The equivalent units of production for conversion costs for June is closest to:

• A) 33,600 units
• B) 40,000 units
• C) 36,400 units
• D) 32,800 units

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Definitions:

Fluid-filled Sacs

Structures in organisms, such as bursae or cysts, containing liquid within a membranous enclosure, serving various physiological functions.

Double-Membrane Organelles

Cellular components surrounded by two lipid bilayers, including the nucleus, mitochondria, and chloroplasts in plants, playing various roles in cellular functioning.

Photosynthesis

The method through which green plants and certain organisms utilize sunlight to produce nutrients from carbon dioxide and water, releasing oxygen as a secondary product.

Plastids

Organelles found in the cells of plants and algae that are responsible for photosynthesis, storage of products like starch, and the synthesis of many types of molecules.