A Company Uses a Process Cost Accounting System

question 61

Multiple Choice

A company uses a process cost accounting system.Its Sewing Department's beginning inventory consisted of 50,000 units (1/4 complete with respect to direct labor and overhead) .The Sewing Department started and finished 120,000 units this period.Its ending inventory consists of 40,000 units (1/4 complete with respect to direct labor and overhead) .All direct materials are added at the beginning of the process.Under FIFO what are the equivalent units of production for the Sewing Department for direct materials and for direct labor and overhead,respectively?

• A) 210,000;120,000
• B) 210,000; 180,000
• C) 167,500; 167,500
• D) 160,000; 162,500
• E) 160,000; 167,500

Interpret market diagrams to analyze shifts in supply and demand due to government policies or externalities.

Understand the effect of pollution abatement on social welfare and resource allocation.

Assess the implications of under- or overallocation of resources to public goods and externalities.

Understand the concept of social stereotypes and their influence on perception.

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Definitions:

Schedule D

A tax form used to report capital gains and losses incurred during a specific year.

Form 4797

A tax form used to report the sale or exchange of business property.

Trade or Business

An activity engaged in regularly and continuously for the purpose of earning income or profit.

Mortgage

A loan secured by real property, typically used to purchase the property itself, where the borrower agrees to repay the lender over a period of time.