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.

Understand the concepts related to economic development and the distribution of wealth.

Assess the role of taxation and regulation in promoting environmental quality through full-cost pricing.

Understand the differences between neoclassical and ecological economic views on natural resources.

Recognize economics as the study of decision-making with limited resources.

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Definitions:

Common Stock

A type of ownership in a corporation that entitles holders to vote on corporate matters and receive dividends.

Cash Increase

The rise in the amount of cash and cash equivalents that a company has during a particular period, often resulting from operational activities, financing, or investments.

Statement of Cash Flows

A document that outlines the overall cash income from both the operational efforts and investment income of a company, and the expenditure on business activities and investment payments over a specified period.

Operating Activities

Activities related to the day-to-day functions of a business involved in producing and selling its products or services.