Department a Had 1,000 Units in Work in Process That

question 109

Multiple Choice

Department A had 1,000 units in Work in Process that were 60% completed at the beginning of the period at a cost of $7,000. 4,000 units of direct materials were added during the period at a cost of $8,200. 4,500 units were completed during the period, and 500 units were 40% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $28,700 and factory overhead was $4,510. The cost of the 500 units in process at the end of the period if the first-in, first-out method is used to cost inventories was:

• A) $3,240
• B) $5,175
• C) $2,569
• D) $2,645

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Definitions:

Seller's Assets

Properties or financial resources owned by a seller, which can include inventory, buildings, equipment, or intellectual property.

Liabilities

Liabilities represent the financial obligations a company owes to outside parties, such as debt and accounts payable.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, indicating the net value owned by the shareholders.

Loan

A sum of money that is borrowed and expected to be paid back with interest by the borrower to the lender.