If Department H Had 600 Units, 60% Completed, in Process

question 119

Multiple Choice

If Department H had 600 units, 60% completed, in process at the beginning of the period, 6,000 units were completed during the period, and 700 units were 30% completed at the end of the period, what was the number of equivalent units of production for conversion costs for the period, if the first-in, first-out method is used to cost inventories?

• A) 7,300
• B) 5,640
• C) 6,700
• D) 5,850

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Definitions:

Product Availability

The extent to which products are in stock and available to be purchased by consumers.

Order Up To Level

A replenishment strategy used in inventory management where stock is ordered up to a predetermined level whenever the inventory falls below a certain point.

Safety Inventory

The reserve stock maintained to prevent stockouts, ensuring smooth operations despite demand and supply fluctuations.

Pipeline Inventory

Goods in transit or in the process of distribution, considered as a part of a company's inventory.