Information About Units Processed and Processing Costs Incurred During a Recent

question 40

Multiple Choice

Information about units processed and processing costs incurred during a recent month in the Refining Department of a manufacturing company follow: $\begin{array} {| l | r | r | } \hline & \text { Number of Units } & \begin{array} { r } \text { Conversion costs } \\\text { percentage complete }\end{array} \\\hline \begin{array} { l } \text { Beginning work in process } \\\text { inventory }\end{array} & 11,000 & 35 \% \\\hline \begin{array} { l } \text { Units started into } \\\text { production }\end{array} & 120,000 & \\\hline \begin{array} { l } \text { Units completed and } \\\text { transferred out }\end{array} & 114,000 & 30 \% \\\hline \begin{array} { l } \text { Ending work in process } \\\text { inventory }\end{array} & 17,000 & \\\hline\end{array}$
The beginning work-in-process inventory included $11,000 of conversion cost. During the month, the Refining Department incurred an additional $290,000 in conversion costs.

- Assuming that the company uses the FIFO method,what are the equivalent units of production for conversion costs for the refining Department for the month?

• A) 119,100 units.
• B) 111,950 units.
• C) 115,250 units.
• D) 114,000 units.

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Definitions:

Cell Junction

Structure that connects a cell directly to another cell or to extracellular matrix. See tight junction, adhering junction, gap junction, plasmodesma.

Extracellular Matrix

A complex network of proteins and other molecules outside cells, providing structural and biochemical support to surrounding cells.

Connective Tissue

Tissue type that supports, binds together, and protects tissues and organs of the body, made up of cells, fibers, and extracellular matrix.

Cardiac Muscle

Specialized muscle tissue found only in the heart, known for its endurance and ability to contract rhythmically without fatigue.