During April,Department a Started 400,000 Units of Product in a Particular

question 16

Multiple Choice

During April,Department A started 400,000 units of product in a particular production process.The beginning work in process inventory was 40,000 units,and the ending inventory was 50,000 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. Units transferred out from Department A during April were

• A)390,000.
• B)400,000.
• C)410,000.
• D)490,000.

---

Definitions:

Market

A venue or system where buyers and sellers interact to trade goods, services, or financial instruments.

Cost Driver

A factor that causes the cost of an activity or process to change, used in activity-based costing to allocate costs more accurately.

Support Department

Units within an organization that provide essential services or support to the primary operations departments but do not directly participate in production activities.

Purchase Requisitions

Documents used within organizations to officially request the purchase of goods or services, usually for approval before a purchase order is issued.