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:

Superego

A component of Sigmund Freud's psychoanalytic theory of personality, which represents the ethical or moral self, holding internalized societal norms and ideals.

Ego

In psychoanalytic theory, the part of the personality responsible for dealing with reality while balancing the demands of the id and superego.

Id

In psychoanalytic theory, the part of the psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Conscious Behavior

Actions that are undertaken with awareness and intent, as opposed to automatically or without thought.