Simon Productions Company Had a Beginning Work in Process Inventory

question 35

Multiple Choice

Simon Productions Company had a beginning work in process inventory totaling $6,000. During the current period, the company added materials costs of $12,300, labor cost of $14,500 and overhead of $18,200. Equivalent production was 12,000 units, and 9,000 units were completed and transferred to the finished goods inventory. Inventory costs would be determined using a unit cost of

• A) $5.67.
• B) $3.75.
• C) $4.25.
• D) $8.50. (6,000 +12,300 + 14,500 + 18,200)/12,000 = 4.25.

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Definitions:

Auditor's Report

A formal opinion or disclaimer, issued by an auditor, regarding the financial statements of a company, indicating whether they present a fair and accurate view.

Introductory

Pertaining to the beginning or initial stage of something, usually providing a basic level of information or understanding.

Scope

The extent of the area or subject matter that something deals with or to which it is relevant.

Conclusion

The final part of a document or speech that summarizes the main points or findings.