Winkle Corporation Uses the FIFO Method in Its Process Costing

question 15

Multiple Choice

Winkle Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing processing center consisted of 5,000 units, 90% complete with respect to conversion costs. Ending work in process inventory consisted of 2,000 units, 60% complete with respect to conversion costs. If 10,000 units were transferred to the next processing center during the period, the equivalent units for conversion costs would be:

• A)13,200 units
• B)6,700 units
• C)10,000 units
• D)12,000 units

Understand the components of job-order costing.

Calculate the ending balances of Work in Process accounts.

Determine the total manufacturing overhead incurred.

Identify underapplied or overapplied manufacturing overhead.

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Definitions:

Health Care

The organized provision of medical services, treatment, and preventive measures to maintain or improve health through the diagnosis and treatment of illness, injury, and other physical and mental impairments.

Relative Percentages

A statistical measure that represents a portion of a whole as a percentage relative to another quantity.

Price Inelastic

A characteristic of goods for which demand does not significantly change with a change in price.

Demand

The desire and ability of consumers to purchase goods and services at different prices, reflecting the relationship between price levels and quantity demanded.