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

question 62

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 the weighted-average inventory method.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) 21,000; 23,000
• B) 26,000; 19,250
• C) 21,000; 19,250
• D) 26,000; 23,000
• E) 19,250;19,250

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Definitions:

Fixed Order

A purchasing strategy where orders for goods or materials are made in predetermined quantities, regardless of current demand or inventory levels.

Processing Times

The amount of time required to complete a specific operation or task, including preparation, processing, and finishing times.

Dispatching Rule

A guideline or criterion used to determine the scheduling and order in which jobs should be processed in manufacturing or service operations.

Flow Time

The time taken for a unit to move through an entire system or process, from start to finish.