Zuniga, Inc

question 133

Multiple Choice

Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040. Direct materials are added at the beginning of the process. Additionally: On May 1: Beginning inventories = 250 units, 40% complete
Direct materials costs = $1,250
Conversion costs = $1,356
Transferred-in costs = $2,560
During May: Direct materials costs incurred = $6,000
Conversion costs incurred = $17,013
On May 31: Ending Inventories = 350 units, 20% complete
Using the FIFO method, units transferred in and completed were:

• A)1,200
• B)1,100
• C)850
• D)1,450

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Definitions:

Recession

A temporary downturn in economic activity, characterized by decreased trade and industrial production, usually recognized by consecutive quarters of declining GDP.

Expected Price Level

The price level consumers, producers, and investors anticipate in the future, influencing their economic decisions in the present.

Wage Bargaining

The negotiation process between employees (or their representatives) and employers regarding the terms of employment, focusing primarily on salary or wage levels.

Long Run

A period in which all factors of production and costs are variable, and firms can adjust all inputs.