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

question 40

Multiple Choice

If Department H had 600 units, 60% completed, in process at the beginning of the period, 8,000 units were completed during the period, and 500 units were 30% completed at the end of the period, what was the number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories? Assume the completion percentage applies to both direct materials and conversion cost.

• A) 7,790
• B) 8,390
• C) 8,600
• D) 8,000

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Definitions:

Product-Focused Layout

A layout strategy in manufacturing where facilities are organized around the production of a specific product or group of products.

Push-Based Strategy

A push-based strategy in supply chain management involves forecasting demand and producing goods ahead of customer orders, pushing them through the distribution channels to the end consumers.

Lean Production

A manufacturing methodology focused on minimizing waste and maximizing value by optimizing processes, resources, and customer satisfaction.