In a Particular Department, 8200 Units Were Started and All

question 211

Multiple Choice

In a particular department, 8200 units were started and all but 800 were completed at the end of the period. These 800 were 70% complete for materials and 30% for conversion costs. Costs added were $55,400 for materials and $52,100 for conversion costs. What is the total number of equivalent units for direct materials?

• A)7960
• B)8760
• C)7640
• D)7400

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Definitions:

FIFO

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for "First In, First Out."

Weighted Average

A calculation method that accounts for the varying degrees of importance or weights of different elements in a dataset, often used in financial metrics and inventory costing.

Moving Average

A moving average is a statistical method used to analyze data points by creating a series of averages of different subsets of the full data set.

Net Method

An accounting method of recording purchases at the net of any trade discounts and rebates.