The Taylor Company Uses a Process Costing System

question 10

Multiple Choice

The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the FIFO costing method. The following data are available for one of its accounting periods Assume that you have calculated a direct materials cost per unit of $4 and a conversion cost per unit of $7. Under this assumption, the ending balance for Work in Process Inventory would be

• A) $82,000.
• B) $165,000.
• C) $99,000.
• D) $123,000.

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Definitions:

Latest and Greatest

A term used to describe the most recent and advanced products, technologies, or ideas currently available.

Early Majority Adopter

A segment of consumers who adopt a new product shortly after the innovators and early adopters, playing a key role in broad market acceptance.

Core Business

The primary area of activity for a company, focusing on the main products or services that generate the most revenue or activity.

Diversification

A business strategy that involves entering into new markets or adding new products to a company's portfolio to reduce risk and capitalize on new opportunities.