Square Deal Company Makes Carpenter’s Squares and Uses a Process

question 78

Multiple Choice

Square Deal Company makes carpenter’s squares and uses a process costing system. There is no spoilage. Manufacturing goes through three departments: Forming, Finishing, and Packing. Unit data for these departments are given below:
$\begin{array}{lrrr}&\text { Forming } & \text { Finishing } &\text { Packing }\\\text { Beginning inventory units } & & \\\quad(80 \% \text { complete) } & 1,000 & 2,000 & 3,000 \\\text { Units started } & 8,000 & ? & ? \\\text { Ending inventory units } & & & \\\quad(20 \% \text { complete) } & 3,000 & 4,000 & 1,000\end{array}$
The Finishing Department adds materials at the point where processing is 50 percent complete.
-Refer to the figure.What are the equivalent units for materials in the Finishing Department? $\text { Weighted Average } \quad \quad \quad \text { FIFO }$

• A)4,000 2,000
• B)4,800 3,200
• C)6,000 3,000
• D)8,000 8,000

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Definitions:

Deregulation

Cutting back or doing away with state authority in a certain field, often to foster greater competition in that field.

Automotive

Refers to the design, development, manufacturing, marketing, and selling of motor vehicles.

Railroads

Land transport routes using a series of tracks and stations for the movement of trains to transport passengers and goods.

Industrial Regulation

Governmental regulation of industries to ensure competition, control prices, prevent monopolies, and protect consumers.