Information for the Current Month for the Polishing Department Is

question 111

Multiple Choice

Information for the current month for the Polishing Department is shown below. $$\begin{array} { l r r } & \text { Direct Materials}& \text { Conversion Cost } \\\text { Beginning work in process inventory } & \$ 8,100 & \$ 10,525 \\\text { Current month's costs } & \$ 31,240 & \$ 56,240 \\\text { Equivalent units based on the FIFO costing } & 7,000 & 74,000 \\\text { method } & & \\& & \\\text { Units completed ? } 69,000 & & \\\text { Units in ending work in process inventory } 66,000 & &\end{array}$$
Direct materials are added at the beginning of the process.Beginning work in process is 30 percent complete as to conversion costs; ending work in process inventory is 80 percent complete.Determine the cost of ending work in process inventory.

• A) $7,200
• B) $3,552
• C) $5,760
• D) $6,288

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Definitions:

ROA

Return on Assets, a financial ratio that measures the profitability of a company in relation to its total assets, indicating how efficient management is at using assets to generate earnings.

DuPont Analysis

DuPont Analysis is a financial evaluation method breaking down return on equity into three components: operating efficiency, asset use efficiency, and financial leverage, to identify what drives a company's profitability.

Earnings Yield Ratio

A metric used to evaluate the profitability of a company, calculated as earnings per share divided by the stock price.

Profit Margin

A financial ratio that indicates the percentage of revenue that exceeds the cost of goods sold, showing the profitability of a company.