Richards Corporation Uses the FIFO Method of Process Costing

question 80

Multiple Choice

Richards Corporation uses the FIFO method of process costing.The following information is available for October in its Fabricating Department: Units:
Beginning Inventory: 80,000 units,60% complete as to materials and 20% complete as to conversion.
Units started and completed: 250,000.
Units completed and transferred out: 330,000.
Ending Inventory: 30,000 units,40% complete as to materials and 10% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $37,200.
Costs in beginning Work in Process - Conversion: $79,700.
Costs incurred in October - Direct Materials: $646,800.
Costs incurred in October - Conversion: $919,300.

-Calculate the equivalent units of materials.

• A)250,000
• B)317,000
• C)294,000
• D)333,000
• E)342,000

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Definitions:

Air Currents

Movements of air resulting from differences in air temperature and pressure, contributing to weather patterns and climactic conditions globally.

Northern Hemisphere

The half of Earth that is north of the equator, covering continents including North America, Europe, and most of Asia and Africa.

Southern Hemisphere

The half of Earth that lies south of the equator.

Rainshadow

A dry area on the leeward side of a mountainous area, where precipitation is significantly reduced due to the blocking of moist air and precipitation by the mountains.