Lopez Company Uses the FIFO Process Costing Method to Determine

question 32

Multiple Choice

Lopez Company uses the FIFO process costing method to determine the product unit cost.The company began the period with 1,800 units in beginning inventory.During the period,32,000 units were started and completed.There were 4,000 units in ending inventory at the end of the period.If all direct materials are added at the beginning of the process,the number of equivalent units for direct materials for the period is

• A)29,800.
• B)28,000.
• C)32,000.
• D)36,000.

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Definitions:

Organizational Structure

The system of rules, roles, and responsibilities within a company that determines how it operates and how its employees work together.

Contingency Plan

A strategy or plan prepared in advance to deal with possible future emergencies, changes, or unexpected events.

Situation Analysis

An assessment of an organization's current situation and external environment, used to identify strengths, weaknesses, opportunities, and threats (SWOT).

Market Conditions

The various factors and influences that affect the supply and demand of products or services within a market.