Xeno Ltd Operates a Process Costing System and Uses the FIFO

question 22

Multiple Choice

Xeno Ltd operates a process costing system and uses the FIFO method. Beginning work in process consists of 1,000 units, 30% complete. Ending work in process is 15% complete, and direct materials are added at the 20% point. The equivalent units of production for materials are 14,000 and for conversion costs are 18,000. The number of units started this month was

• A) 15,000
• B) 18,000
• C) 36,000
• D) 37,000

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Definitions:

Nesting

Behavior characterized by the urge to prepare one's home for a new arrival, commonly observed in the latter stages of pregnancy.

Labor

The process of childbirth from the start of uterine contractions to delivery.

Parturition

The act or process of giving birth; childbirth.

Giving Birth

The act or process of delivering and expelling a fetus from the womb to the outside world.