The Following Data Are Available for a Company's Manufacturing Activities

question 142

Multiple Choice

The following data are available for a company's manufacturing activities:
$\begin{array}{ll}\text { Beginning goods in process inventory } & 5,000 \text { units, } 1 / 4 \text { of the labor added this } \\& \text { period } \\\text { Units started and completed } & 15,000\\\text { Ending goods in process inventory}& 6,000 \quad 6,000 \text { units, \( 1 / 2 \) of the labor added this }\\&\text { period}\end{array}$
Assume the company uses FIFO inventory.If materials are added when the production process begins and direct labor is applied uniformly throughout the process,what are the equivalent units for direct materials and for direct labor,respectively?

• A) 16,250; 19,250
• B) 16,250; 21,750
• C) 21,000; 19,250
• D) 19,250; 18,750
• E) 21,000; 22,250

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Definitions:

Gamble

The act of risking something of value on the outcome of an event in the hope of gaining something of greater value.

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The process of creating an educated guess or proposition that attempts to explain certain phenomena or relationships, which can be tested through research or experimentation.

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Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, hindering problem-solving abilities.