A Company Uses a Process Cost Accounting System and the FIFO

question 11

Multiple Choice

A company uses a process cost accounting system and the FIFO inventory valuation method.Its Assembly Department's beginning inventory consisted of 50,000 units,three-fourths complete with respect to direct labor and overhead.The department started and finished 127,500 units this period.The ending inventory consists of 40,000 units that are one-fourth complete with respect to direct labor and overhead.All direct materials are added at the beginning of the process.Goods in Process included direct labor costs of $24,000 and overhead costs of $32,000 for the period.The direct labor cost per equivalent unit is:

• A) $0.126
• B) $0.160
• C) $0.178
• D) $0.213
• E) $0.373

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Definitions:

Oocyte Production

The process by which female gametes (oocytes) are produced through oogenesis.

Reception

The process or act of receiving signals, substances, or stimuli, either in cells or at sensory organs.

Pudendal Cleft

Cleft between the labia majora.

Vestibular Glands

Glands located near the vaginal opening, responsible for secreting lubricating fluid.