(Appendix 4A) Ozdemir Corporation Uses the FIFO Method in Its

question 76

Multiple Choice

(Appendix 4A) Ozdemir Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-What are the equivalent units for conversion costs for the month in the first processing department?

• A) 8,095
• B) 7,100
• C) 9,300
• D) 750

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Definitions:

Merchandise

Goods that are bought and sold in the course of business, typically in a retail or wholesale environment.

Credit

An entry on the right side of an accounting ledger representing an increase in liabilities or income, or a decrease in assets or expenses.

Contra Accounts

Accounts used to offset or reduce the balance of another account, usually appearing on the balance sheet.

Merchandiser

A business or person that purchases goods for resale at a profit.