Sparky Corporation Uses the FIFO Method of Process Costing

question 200

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 cost per equivalent unit of conversion.

• A) $4.60
• B) $5.45
• C) $4.16
• D) $4.98
• E) $4.50

Interpret the impact of entry and exit on market dynamics in monopolistic competition.

Understand the role of economic profit in monopolistic competition.

Comprehend the significance of demand and cost schedules in determining firm's market strategies.

Understand the use of concentration ratios and the Herfindahl index to measure market concentration.

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Definitions:

Fertility

The natural capability to produce offspring, often influenced by health, age, and environmental factors.

Emerging Adulthood

A phase of life between adolescence and full-fledged adulthood, marked by exploration, instability, and self-focus, typically occurring from late teens to mid-twenties.

Revolving Door

A term often used to describe a system where individuals move back and forth between positions in public and private sectors, potentially leading to conflicts of interest.

Emerging Adult

Refers to individuals, typically aged 18 to 25, who are transitioning from adolescence to adulthood and experiencing related changes in identity and self-concept.