At OxyCorp,direct Materials Are Added at the Beginning of the Process

question 201

Multiple Choice

At OxyCorp,direct materials are added at the beginning of the process and conversions costs are uniformly applied.Other details include: $\begin{array}{|l|r|}\hline \text { WIP beginning ( } 55 \% \text { for conversion) } & 13,700 \text { units } \\\hline \text { Units started } & 125,000 \text { units } \\\hline \text { Units completed and transferred out } & 116,500 \text { units } \\\hline \text { WIP ending ( } 35 \% \text { for conversion) } & 22,200 \text { units } \\\hline \text { Beginning WIP direct materials } & \$ 50,300 \\\hline \text { Beginning WIP conversion costs } & \$ 22,500 \\\hline \text { Costs of materials added } & \$ 412,000 \\\hline \text { Costs of conversion added } & \$ 301,000 \\\hline\end{array}$
- What are the total equivalent units for direct materials?

• A)124,270
• B)138,700
• C)147,200
• D)130,200

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Definitions:

Authority

The authority or capability to issue commands, make choices, and ensure compliance.

Hutterites

Members of a communal Anabaptist sect living primarily in the United States and Canada, known for their collective lifestyle and self-sufficiency.

Financial Resources

Assets and funding that are available to a person, organization, or country for use in the pursuit of goals and objectives, including capital, cash, and lines of credit.

Productive Assets

Assets that are used in the operations of a business to generate revenue, including machinery, buildings, and equipment.