Intask Company Uses the FIFO Method in Its Process Costing

question 12

Multiple Choice

Intask Company uses the FIFO method in its process costing system.Beginning inventory in the mixing department consisted of 6,000 units that were 75% complete with respect to conversion costs.Ending work in process inventory consisted of 5,000 units that were 60% complete with respect to conversion costs.If 12,000 units were transferred to the next processing department during the period,the equivalent units for conversion cost would be:

• A)12,500 units
• B)10,500 units
• C)13,500 units
• D)13,000 units

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Definitions:

Divergent Thinking

Divergent thinking is a thought process or method used to generate creative ideas by exploring many possible solutions.

Flynn Effect

A term describing the observed substantial and long-term increase in both fluid and crystallized intelligence test scores measured in many parts of the world over the 20th century.

Predictive Validity

The extent to which a score on a scale or test predicts future performance or behavior.

Intrapersonal Intelligence

Intrapersonal intelligence is the capacity to understand oneself, including one's emotions, motivations, and thoughts.