Nouri Corporation Uses the FIFO Method in Its Process Costing

question 70

Multiple Choice

Nouri Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. What are the equivalent units for materials for the month in the first processing department?

• A)850
• B)7,240
• C)7,600
• D)6,300

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Definitions:

Price Elasticity

Price elasticity refers to the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Demand Schedule

A chart displaying the amounts of a product or service that buyers are ready and capable of purchasing at different price levels.

Relatively Inelastic

Describes a situation where the quantity demanded or supplied changes by a smaller percentage than the percentage change in price.

Demand Schedule

A demand schedule is a table that lists the quantity of a good that consumers are willing and able to purchase at various prices over a specific period.