During March, Department a Started 300,000 Units of Product in a Particular

question 73

Multiple Choice

During March, Department A started 300,000 units of product in a particular production process. The beginning work in process inventory was 50,000 units, and the ending inventory was 40,000 units. Direct materials are introduced at the start of processing, and beginning and ending inventories are considered to be 40 percent complete with respect to conversion costs. Department A uses the FIFO costing method. The number of units started and completed during March was

• A) 300,000.
• B) 260,000.
• C) 324,000.
• D) 276,000.

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Definitions:

Agricultural Liens

Security interests in farm products, such as crops or livestock, which secure payment or performance of an obligation.

Unperfected

Refers to a security interest in property that has not been properly registered or publicized, and therefore may not have priority over other claims.

Surety

A person or entity that takes responsibility for someone else's performance, such as repaying a loan, appearing in court, or fulfilling a contract.

Creditor's Risk

The risk that a creditor will not receive the outstanding debt owed by a borrower, due to the borrower's default or inability to pay.