(Appendix 4A) Sumptuous Beer Corporation Manufactures Beer in Two Departments

question 40

Multiple Choice

(Appendix 4A) Sumptuous Beer Corporation manufactures beer in two departments, Fermenting and Bottling. In the Fermenting Department, ingredients are placed in a large vat and fermented for three days. The beer is then transferred over to Bottling where it is further purified and bottled. Sumptuous uses a FIFO process cost system to collect costs in both departments.
On May 1, the Fermenting Department had 32,000 gallons (units) in process. These gallons were 100% complete with respect to materials (ingredients) and 80% complete with respect to conversion cost. During May, Fermenting started an additional 460,000 gallons into production. On May 31, Fermenting had 18,000 gallons in work in process. These gallons were 100% complete with respect to materials and 60% complete with respect to conversion cost.
-What are the Fermenting Department's equivalent units (gallons) of production related to conversion costs for May?

• A) 459,200
• B) 474,800
• C) 477,200
• D) 478,400

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Definitions:

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean, indicating how spread out the values are.

High Blood Pressure

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Treatment Group

In an experimental study, the group that receives the treatment or condition being tested, as opposed to the control group.

Control Group

A group in an experiment or study that does not receive treatment by the researchers and is then used as a benchmark to measure how the other tested subjects do.