Pushkin Corporation Uses the FIFO Method in Its Process Costing

question 3

Multiple Choice

Pushkin 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)400
• B)8,700
• C)8,140
• D)7,700

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Definitions:

Producer Surplus

The difference between what producers are willing to sell a product for and the actual price they receive, representing profit or gain.

Consumer Surplus

The difference between the total amount that consumers would have been willing to pay for a good or service versus what they actually pay.

Total Surplus

The sum of consumer surplus and producer surplus, measuring the overall welfare benefit to a society from the production and consumption of goods and services.

Domestic Producers

Domestic producers are individuals or companies that produce goods or services within their home country's borders.