The Following Data Were Taken from the Accounting Records of a Company

question 115

Multiple Choice

The following data were taken from the accounting records of a company that uses the FIFO method in its process costing system: Beginning work in process inventory: 20,000 units (materials 100% complete,conversion costs 60% complete)
Started in process during the period: 80,000 units
Ending work in process inventory: 30,000 units (materials 100% complete,conversion
Costs 70% complete)
The equivalent units are

• A) materials, 90,000 units; conversion costs, 89,000 units.
• B) materials, 100,000 units; conversion costs, 91,000 units.
• C) materials, 60,000 units; conversion costs, 53,000 units.
• D) materials, 80,000 units; conversion costs, 79,000 units.

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Definitions:

Hierarchy

The organization of people or entities in a ranked order, often used to designate authority, responsibility, and reporting relationships within structures like corporations.

Empowerment

The process of giving employees power and responsibility to make decisions and contribute to the organization's success.

Decisions

The act of making a choice among different options or actions based on judgment and information.

Discretion

The freedom to decide what should be done in a particular situation, often with careful judgment.