Use the Information Below to Answer the Following Questions

question 73

Multiple Choice

Use the information below to answer the following questions:
The Adams Company uses a process costing system. During the current period, 1,600 units were started and 1,200 units were completed and transferred out. Ending units were 70% complete for materials and 35% complete for conversion costs. Direct materials costs added were $32,500 and conversion costs added were $31,400. There was no beginning WIP inventory and conversion costs are added evenly throughout the process.
-At the end of the period, what are the total equivalent units for conversion costs for the Adams Company?

• A) 1,340
• B) 1,200
• C) 1,480
• D) 1,400

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Definitions:

Exporter

A person, company, or country that sells goods and services to another country.

Tariff

A charge levied by the government on goods that are brought into or sent out of the country.

North American Free Trade Agreement

The North American Free Trade Agreement (NAFTA) was an agreement among the United States, Canada, and Mexico designed to remove tariff barriers between the three countries.

Wages

The compensation paid by employers to employees for their labor, typically expressed as an hourly rate, monthly salary, or piece rate.