Nader, Inc

question 91

Multiple Choice

Nader, Inc., has the following information available: At the beginning of the period, there were 500 units in process that were 40 percent complete as to conversion costs and 100 percent complete as to direct materials costs. During the current period, 4,300 units were started and completed. Ending inventory contained 320 units that were 80 percent complete as to conversion costs and 100 percent complete as to direct materials costs. (Assume that the company uses the FIFO costing method.)
The equivalent units of production for direct materials and conversion costs, respectively, were

• A) 5,120 for direct materials and 5,056 for conversion costs.
• B) 4,480 for direct materials and 4,544 for conversion costs.
• C) 4,120 for direct materials and 4,056 for conversion costs.
• D) 4,620 for direct materials and 4,856 for conversion costs.

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Definitions:

Confidence Interval

A variety of numerical values, sourced from sample measurements, that is believed to include the value of a not-yet-known population attribute.

Population Mean

The average value of all the members of a set or population.

Probability

The determination of the odds that an event will happen, shown as a number from 0 to 1.

Sample Mean

The average of all the values in a sample, used as an estimate of the population mean.