The Information Below Was Obtained from the Records of the First

question 86

Multiple Choice

The information below was obtained from the records of the first processing department of Christine Corporation for the month of July. The company uses the weighted-average method in its process costing system.
$\begin{array} { |l | r | r | } \hline & \text { Number of Units } & \begin{array} { r } \text { Labour and overhead } \\\text { percentage complete }\end{array} \\\hline \begin{array} { lrr } \text { Work in process inventory, } \\\text { July 1 }\end{array} & 20,000 & 40 \% \\\hline \text { Started during the month } & 70,000 & \\\hline \begin{array} { l } \text { Completed during the } \\\text { month }\end{array} & 80,000 & \\\hline \begin{array} { l } \text { Work in process inventory, } \\\text { July 31 }\end{array} & ? & 25 \% \\\hline\end{array}$ All materials are added at the beginning of the manufacturing process.



-What are the equivalent units of production for labour and overhead for the month?

• A) 70,000 units.
• B) 90,000 units.
• C) 80,000 units.
• D) 82,500 units.

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Definitions:

Activities Per Product

The specific tasks or operations that need to be completed in order to produce each unit of a product.

Activity Cost Reduction

Initiatives or strategies aimed at lowering the costs associated with specific business activities or processes.

Activity-Based Costing

A costing method that allocates overhead and indirect costs to related products and services based on their usage of resources.

Lower-Cost Materials

This refers to choosing materials that are less expensive without significantly compromising on quality, often to reduce production costs.