Information for the Current Month for Process D Is Shown

question 9

Multiple Choice

Information for the current month for Process D is shown below. $\begin{array}{lll} & \text { Direct Materials } & \text { Couversion Costs } \\ \text { Beginning work in process inventory }& \$ 6,400 & \$ 9,600 \\\text { Current month's costs }& 31,740 & 51,100 \\\text { Equivalent units based on the FIFO costing method } & 69,000 & 70,000\end{array}$ Direct materials are added at the beginning of the process. Beginning work in process is 50 percent complete as to conversion costs; ending work in process inventory is 40 percent complete. Determine the cost of ending work in process inventory.

• A) $7,040
• B) $5,120
• C) $3,200
• D) $3,760

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Definitions:

Due Date

The specific day by which a task, obligation, or payment is expected to be completed or fulfilled.

Gross Collection Ratio

Includes the total payments received by a practice for a specific period of time, not including any write-offs. The gross collection ratio can be calculated by taking the total payments for the specific period divided by the total charges, again without considering write-offs.

Percentage

A portion of a whole expressed as a fraction of 100, used to describe proportions or compare quantities.

Gross Collection Ratio

A financial metric that measures the total amount of revenue collected versus the total amount charged.