The Following Information Was Obtained from the Records of the First

question 66

Multiple Choice

The following information was obtained from the records of the first processing department of Keith Manufacturing Company for the month of February. The company uses the FIFO method in its process costing system.
$\begin{array}{|l|r|r|}\hline & \text { Number of Units } & \begin{array}{r}\text { Labour and overhead } \\\text { percentage complete }\end{array} \\\hline \begin{array}{l}\text { Work in process inventory, } \\\text { February 1 }\end{array} & 15,000 & 30 \% \\\hline \begin{array}{l}\text { Started in assembly during } \\\text { the month }\end{array} & 60,000 & \\\hline \begin{array}{l}\text { Work in process inventory, } \\\text { February 28 }\end{array} & 20,000 & 20 \% \\\hline\end{array}$

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) 54,500 units.
• B) 59,000 units.
• C) 95,000 units.
• D) 60,000 units.

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the financial performance over a given period.

Cash Flow

A rephrased definition for KT-16: The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Net Operating Cash Flow

The amount of cash generated by a company's regular business operations over a specific period.

Long-Term Liabilities

Debts or obligations that are not due for settlement within one year and are often used to finance the purchase of long-term assets.