Oxyrom Corporation Uses the FIFO Method in Its Process Costing

question 27

Multiple Choice

Oxyrom Corporation uses the FIFO method in its process costing system. Operating data for the Brazing Department for the month of November appear below: What were the equivalent units for conversion costs in the Brazing Department for November?

• A)49,040
• B)50,200
• C)43,200
• D)48,280

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the issuing company’s ledger but have not yet been cashed or cleared by the bank.

Journal Entry

A record of a financial transaction in accounting, detailing the accounts affected and the amounts.

Bank Service Charge

Fees charged by a bank to cover services provided to the account holder.

Ledger

A comprehensive collection of a company's financial transactions, recorded in a structured and systematic manner.