Richards Corporation Uses the FIFO Method of Process Costing

question 116

Multiple Choice

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department: Units:
Beginning Inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion.
Units started and completed: 250,000.
Units completed and transferred out: 330,000.
Ending Inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700.
Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300.
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Calculate the equivalent units of conversion.

• A) 294,000
• B) 333,000
• C) 342,000
• D) 317,000
• E) 250,000

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Definitions:

Legislation

Laws or legal enactments made or enacted by a governing body or legislature.

1764

A year marked by significant events including the British Parliament's passage of the Sugar Act, which was a revenue-raising effort that contributed to the American Revolutionary War.

Printing

The process of producing text and images, typically with ink on paper, using a press machine or similar technology.

Paper Money

A form of currency issued by governments and banks that is used as a medium of exchange.