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:

Work Schedule

A timetable for when employees are expected to start and finish their work, often including breaks, work hours, and shift patterns.

Profit Distribution

The allocation of a company's profits among shareholders, stakeholders, or reinvestment into the company, following specific policies or agreements.

Skill Level

A classification of workers based on their expertise, competencies, and abilities in their job functions.

Staffing Policies

encompass the rules, guidelines, and practices that an organization follows in hiring, training, and managing its employees, often reflecting its strategic objectives and culture.