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

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Definitions:

Product Design Collaboration

The cooperative effort between different departments or organizations to design a product, enhancing innovation and efficiency.

Support

Assistance provided to help solve problems or improve situations, often involving customer service, technical help, or resources for a project.

Warehousing Cost

Expenses related to storing goods in a warehouse, including rent, utilities, labor, and inventory handling charges.

Procurement Aggregation

The combining of procurement requirements for several departments or divisions of a business to secure better terms and prices from suppliers.