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

question 155

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 conversion costs?

• A)124,270
• B)138,700
• C)124,035
• D)128,710

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Definitions:

Motivation

The psychological processes that arouse and direct goal-directed behavior.

Work

A physical or mental effort done in order to achieve a purpose or result, often associated with employment or tasks.

Telecommuting

A work arrangement in which employees do not commute to a central place of work, instead working via electronic communications from a different location, often their home.

Advantages

The favorable factors or benefits that contribute to achieving success or a superior position.