Direct Disk Drive Company Operates a Computer Disk Manufacturing Plant $\quad 25,000$

question 42

Multiple Choice

Direct Disk Drive Company operates a computer disk manufacturing plant.Direct materials are added at the end of the process.The following data were for June 20X5: Work in process, beginuning inventory $\quad 25,000$ units
Transferred-in costs ( $100 \%$ complete)
Direct materials ( $0 \%$ complete $)$
Conversion costs (90\% complete)

Transferred in during current period $\quad 165,000$ units
Completed and transferred out $\quad \quad \quad 185,000$ units

Work in process, ending inventory $\quad\quad 5,000$ units
Transferred-in costs ( $100 \%$ complete )
Direct materials ( $0 \%$ complete)
Conversion costs ( $65 \%$ complete )

How many units must be accounted for during the period?

• A) 215,000 units
• B) 190,000 units
• C) 169,500 units
• D) 140,000 units

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Definitions:

Factory Overhead

The indirect costs associated with manufacturing, excluding direct materials and direct labor expenses.

Current Asset

Resources anticipated to be transformed into cash, disposed of, or utilized within one year or during the business's standard operating period.

Depreciation Expense

An accounting method that spreads the purchase cost of a physical asset minus its salvage value over its expected useful life.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, depreciation, and salaries for managerial staff, not directly tied to production.