Sparky Corporation Uses the FIFO Method of Process Costing

question 31

Multiple Choice

Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department: Units:
Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $43,000. Costs in beginning Work in Process - Conversion: $48,850.
Costs incurred in February - Direct Materials: $287,000. Costs incurred in February - Conversion: $599,150.
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Calculate the equivalent units of conversion.

• A) 144,000
• B) 110,000
• C) 140,000
• D) 130,250
• E) 165,000

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Definitions:

Body Temperatures

The degree or intensity of heat present in a living body, typically maintained within a range that enables normal functioning.

Muscle Activity

The physiological processes of muscle contraction and relaxation, which enable movement and stabilization of the body.

Mammals

Warm-blooded vertebrate animals distinguished by the possession of hair or fur, the birth of live young, and the females' ability to produce milk for their offspring.

Restorative Processes

Procedures or activities intended to bring about healing, rehabilitation, or restoration to an optimal state of health or function.