The Following Information Was Obtained from the Records of the First

question 16

Multiple Choice

The following information was obtained from the records of the first processing department of Bapst Corporation for the month of May. The company uses the FIFO method in its process costing system. All materials are added at the beginning of the manufacturing process. The equivalent units for materials for the month is:

• A)21,600 units
• B)22,500 units
• C)16,000 units
• D)20,000 units

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Definitions:

Cost Of Production Report

A document that summarizes the production and cost activity within a manufacturing department over a specific period.

Finished Goods

Products that have completed the manufacturing process and are ready for sale.

Conversion Cost

The combined costs of direct labor and manufacturing overheads that are incurred to convert raw materials into finished goods.

Production Process

The sequence of operations or activities involved in converting raw materials and components into finished goods or services.