Colil Computer Systems, Inc

question 136

Multiple Choice

Colil Computer Systems, Inc., manufactures printer circuit cards. All direct materials are added at the inception of the production process. During January, the accounting department noted that there was no beginning inventory. Direct materials purchases totaled $300,000 during the month. Work-in-process records revealed that 10,000 card units were started in January, 5,000 card units were complete, and 4,000 card units were spoiled as expected. Ending work-in-process card units are complete in respect to direct materials costs. Spoilage is not detected until the process is complete.
-What is the amount allocated to the work-in-process ending inventory?

• A) $40,000
• B) $50,000
• C) $30,000
• D) $75,000

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Definitions:

Standards

Standards refer to established levels of quality or achievement that are used as a benchmark to measure, compare, or judge the performance or quality of products, services, or activities.

Goals

Targets or outcomes that an individual or organization aims to achieve over a certain period.

Shame

A painful feeling of humiliation or distress caused by the consciousness of wrong or foolish behavior.

Basic Cry

A simple, reflexive cry signifying discomfort or hunger in infants, typically indicative of a physiological need.