LDR Manufacturing Produces a Pesticide Chemical and Uses Process Costing

question 32

Multiple Choice

LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. On January 1, 2014, the first department, Mixing, had no beginning inventory. During January, 40,000 fl. oz. of chemicals were started in production. Of these, 32,000 fl. oz. were completed and 8,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process and conversion costs are applied evenly through the process. At the end of the month, LDR calculated equivalent units. The ending inventory in the Mixing Department was 60% complete with respect to conversion costs. With respect to direct materials, what is the number of equivalent units in the ending inventory?

• A)4,800 equivalent units
• B)32,000 equivalent units
• C)40,000 equivalent units
• D)8,000 equivalent units

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Definitions:

GMO

Genetically Modified Organisms; organisms whose genetic material has been altered using genetic engineering techniques.

Agricultural Application

The use of various techniques, tools, and materials in farming and crop production to increase efficiency and productivity.

Glyphosate

A broad-spectrum systemic herbicide used to kill weeds, especially annual broadleaf weeds and grasses that compete with crops.

DNA Cloning

Set of methods that uses living cells to mass-produce targeted DNA fragments.