In Applying the First-In, First-Out Method of Costing Inventories, If

question 26

True/False

In applying the first-in, first-out method of costing inventories, if 8,000 units which are 30% completed are in process at June 1, 28,000 units are completed during June, and 4,000 units were 75% completed at June 30, the number of equivalent units of production for June was 33,400.

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Definitions:

Raw Materials Issued

The total raw materials moved from inventory for use in production.

Labor Time Tickets

Documents used to track the amount of time an employee spends on different tasks, facilitating accurate labor cost allocation.

Supervision

The act of overseeing work performance and activities to ensure that goals are met and policies are followed.

Overhead Applied

The method of assigning a portion of indirect costs to specific production jobs or departments based on a predetermined rate.