Nader,Inc,Has the Following Information Available At the Beginning of the Period,there Were 500 Units in

question 36

Multiple Choice

Nader,Inc.,has the following information available: $\begin{array}{lrr}&\text { Costs from } & \text { Costsfrom } \\&\text { Beginning } & \text { Current Period } \\&\text { Inventory }\\\text { Direct materials } & \$ 2,300 & \$ 21,252 \\\text { Conversion costs } & 6,200 & 150,536\end{array}$

At the beginning of the period,there were 500 units in process that were 40 percent complete as to conversion costs and 100 percent complete as to direct materials costs.During the current period,4,300 units were started and completed.Ending inventory contained 320 units that were 80 percent complete as to conversion costs and 100 percent complete as to direct materials costs.(Assume that the company uses the FIFO costing method.)
The equivalent units of production for direct materials and conversion costs,respectively,were

• A) 5,120 for direct materials and 5,056 for conversion costs.
• B) 4,480 for direct materials and 4,544 for conversion costs.
• C) 4,120 for direct materials and 4,056 for conversion costs.
• D) 4,620 for direct materials and 4,856 for conversion costs.

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Definitions:

Operation Indicated

A specific mathematical operation that is suggested or required by the context or problem.

Simplify

To make something less complicated or easier to understand, often by reducing it to its basic elements.

Simplify

To simplify something or make it more comprehensible.

Evaluate

To calculate or determine the value of an expression or the solution to a problem.