Schaefer Company Has the Following Information Available for the Month

question 98

Multiple Choice

Schaefer Company has the following information available for the month of March:
$\begin{array}{lccll} &&\text { Units }&\text { Transterred- }&\text { Direct }\\&\text { Conversion }& \text { in Costs } & \text { Materials } & \text { Costs } \\\text { Work-in-process inventory, March } 1&240 & \$ 33,600 & 0 & \$ 18,000 \\*\text { Percent complete }&& 100 \% & 0 \% & 62.5 \%\end{array}$
$\begin{array}{ll}\text { Transferred-in during March } & 400 \\\text { Completed in March } & 440 \\\text { Work-in-process inventory, March 31 } & 200\\\text { *Percent complete }&&100\%&0\%&80\%\end{array}$
$\begin{array} { l } \text {Costs added in March }&\$52,000&\$13,200&\$48,600 \\\end{array}$

The company uses the weighted-average method for process costing.What are the equivalent units for March for transferred-in costs?

• A) 400
• B) 440
• C) 600
• D) 640

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Definitions:

Inflationary Spiral

A situation where rising wages lead to increased demand and prices, which then lead to higher wages and prices again, creating a continuous upward price spiral.

Unemployment

The condition of not having a job, describing individuals actively seeking work but unable to find employment.

Affirmative Action

A set of policies aimed at increasing opportunities for historically excluded groups in education and employment by considering factors including race and gender.

Quotas

Are limits set by governments on the quantity of a product that can be imported or exported within a certain timeframe, used to regulate trade and protect domestic industries.