Assume There Were 6,000 Units in Beginning Work in Process

question 18

Multiple Choice

Assume there were 6,000 units in beginning work in process, 60% complete. 20,000 units were completed during the month. Ending work in process is 40% complete, which is equivalent to 3,200 units for conversion costs. Materials are added at the beginning of the process. The standard cost method is used. Assume the total conversion costs allocated to the completed units was $91,650. What amount of conversion costs are attached to the beginning work in process at the beginning of the month?

• A) $1,850
• B) $2,550
• C) $4,400
• D) None of the above

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Definitions:

Traditional IRA

An individual retirement account allowing individuals to direct pre-tax income towards investments that can grow tax-deferred until retirement withdrawals.

Minimum Distribution

The required minimum amount that must be withdrawn annually from retirement accounts after reaching a certain age.

Plan Balance

The total current value of an individual's account in a retirement plan, reflecting contributions, investment gains or losses, and withdrawals made over time.

Simplified Employee Pension

A Simplified Employee Pension (SEP) is a retirement plan that allows employers to make contributions to the retirement accounts of their employees, simplifying the process for small businesses.