Use the Information Below to Answer the Following Question(s)

question 7

Multiple Choice

Use the information below to answer the following question(s) .
Father Time Clock Shop manufactures clocks on an automated assembly line. It utilizes two cost categories: direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of production, while conversion costs are allocated evenly throughout production, and the company uses weighted-average costing.
Data for the Assembly Department are:

-What are the equivalent units for direct materials and conversion costs, respectively?

• A) 1,200.5 units; 1,160.64 units
• B) 1,050 units; 1,012.5 units
• C) 1,050 units; 887.5 units
• D) 962 units; 990 units
• E) 990 units and 962 units

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Definitions:

Pegboard System

An accounting system that uses a board with pegs to track the financial transactions and balances of a business.

Quarterly Amounts

Financial figures or sums calculated or reported every three months within a fiscal year.

Government Agencies

Organizations or bodies formed by a government to enact policies, enforce laws, and manage public sector activities.

Credit Balance

The amount of money in a financial account that the account holder can claim, representing a surplus of payments over charges.