Fiero Corporation Adds All Materials at the Beginning of Production

question 12

Multiple Choice

Fiero Corporation adds all materials at the beginning of production and incurs conversion cost evenly throughout manufacturing. The company completed 70,000 units during the year and had 12,000 units in process at year end, 20% complete with respect to conversion cost. Equivalent units for the year total:

• A) materials, 70,000; conversion, 70,000.
• B) materials, 70,000; conversion, 2,400.
• C) materials, 72,400; conversion, 72,400.
• D) materials, 82,000; conversion, 72,400.
• E) materials, 82,000; conversion, 82,000.

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Definitions:

National Labor Relations (Wagner) Act

A 1935 United States federal law that protects the rights of employees to organize, form unions, and engage in collective bargaining, while prohibiting certain unfair labor practices.

Coercion or Interference

Actions or practices that force or unduly influence someone to act in a way that they would not otherwise choose.

Union Activity

Actions and efforts by labor unions aimed at advocating for workers' rights, wages, benefits, and working conditions.

Labor Unions

Organizations that represent the collective interests of workers, negotiating wages, work conditions, and benefits with employers.