Answer the Following Question(s)using the Information Below

question 49

Multiple Choice

Answer the following question(s) using the information below:
Hawk Ltd.uses process costing in its Fabricating Department.At the beginning of October, it had 12,000 units in beginning work-in-process that were 40% complete with respect to conversion.During October it put 87,000 units into production and completed 89,000 good units.At October 31, there were 3,000 units in ending work-in-process that were 70% complete with respect to conversion.Direct materials are added at the beginning of the process.Inspection occurs at the end of the process and normal spoilage is 6% of good output.Costs related to the beginning inventory were $36,800 for direct materials and $28,600 for conversion costs.During the month, the company issued $280,000 of direct materials and incurred $599,400 of conversion costs.
-Assuming Hawk uses the FIFO method of process costing, the equivalent units for direct materials and conversion costs respectively for October are

• A)87,000 units; 93,300 units.
• B)87,000 units; 94,200 units.
• C)80,000 units; 86,300 units.
• D)87,000 units; 90,900 units.
• E)99,000 units; 94,200 units.

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Definitions:

Sample Size

The number of observations or units included in a sample, taken from a population for the purposes of statistical analysis.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation indicates that the values tend to be close to the mean of the set.

Boutique Hotel

A small and stylish hotel that typically offers a personalized and unique accommodation experience.

Attendance Policy

A set of rules or guidelines that specifies the expectations for attendance, including consequences of absence at a workplace or educational institution.