Department S Had No Work in Process at the Beginning

question 20

Multiple Choice

Department S had no work in process at the beginning of the period. 12,000 units of direct materials were added during the period at a cost of $84,000, 9,000 units were completed during the period, and 3,000 units were 30% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $49,500 and factory overhead was $9,900. The total cost of units completed during the period were:

• A) $117,000
• B) $143,400
• C) $121,000
• D) $127,450

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Definitions:

Consolidated Net Income

The combined net income of a parent company and its subsidiaries, after adjustments for intercompany transactions.

Noncontrolling Interest

A minority shareholding in a company where the shareholder does not have the majority of voting rights.

Acquisition-Date Fair Value

The value of an asset or liability at the time of acquisition, determined according to applicable accounting standards for fair value measurement.

Controlling Interest

Ownership of a sufficient portion of a company's stock to dictate policies and make management decisions, typically over fifty percent.