During March, Department a Started 300,000 Units of Product in a Particular

question 94

Multiple Choice

During March, Department A started 300,000 units of product in a particular production process. The beginning work in process inventory was 50,000 units, and the ending inventory was 40,000 units. Direct materials are introduced at the start of processing, and beginning and ending inventories are considered to be 40 percent complete with respect to conversion costs. Department A uses the FIFO costing method. The number of equivalent units produced with respect to conversion costs was

• A) 296,000.
• B) 306,000.
• C) 336,000.
• D) 316,000.

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Definitions:

Price

The quantity of money considered, needed, or paid in exchange for something.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, measuring the benefit to consumers.

Tax

A compulsory financial charge imposed by a government on individuals or entities to fund public expenditures.

Tax Per Unit

A specific amount of tax imposed on each unit of a product or service, often used to regulate consumption or raise government revenue.