During the Current Month,Thompson Company Started 40,000 Units of Product

question 76

Multiple Choice

During the current month,Thompson Company started 40,000 units of product and transferred 25,000 fully completed units to finished goods.The final work in process inventory was 50 percent complete as to labor operations.There was no initial work in process,and actual labor hours were 150,000 for the period.Each unit should have required 3 direct labor hours to be produced at standard.The total standard hours allowed for the period are

• A)75,000 hours.
• B)97,500 hours.
• C)120,000 hours.
• D)150,000 hours.

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Definitions:

Throughput Time

The amount of time it takes for a product to pass through a production process, from start to finish, including processing, inspection, and transit times.

Desirable

Something that is wanted or wished for because it is considered attractive, satisfying, or beneficial.

Operating Asset

Assets used in the day-to-day operations of a business to generate revenue, such as machinery, buildings, and equipment.

Plant Expansion

Plant expansion refers to the process of enlarging the capacity or physical size of a manufacturing facility to increase production capabilities, accommodate new machinery, or improve efficiency.