Richards Corporation Uses the FIFO Method of Process Costing

question 207

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 conversion.

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

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Definitions:

Labouring Job

A labouring job involves physical work, often in sectors such as construction, manufacturing, or agriculture, typically requiring physical strength and endurance more than formal education.

Invalid Tender

An offer to pay that does not meet the legal requirements.

Exact Amount

A specific, precise sum of money or measurement of quantity, with no deviation allowed.

Legal Tender

Currency that is officially recognized by a governmental authority as acceptable payment for debts.