Herston Company Uses the FIFO Method in Its Process Costing

question 39

Multiple Choice

Herston Company uses the FIFO method in its process costing system.The beginning work in process inventory in a particular department consisted of 6,000 units,two-thirds complete with respect to conversion costs.During the month,42,000 units were started and 40,000 units were completed and transferred out of the department.The company had 40,000 equivalent units for conversion costs.The ending work in process inventory in the department consisted of:

• A)8,000 units,25% complete with respect to conversion costs
• B)0 units
• C)8,000 units,50% complete with respect to conversion costs
• D)4,000 units,100% complete with respect to conversion costs

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Definitions:

Differentiation Focus

A business strategy that targets a specific market segment, offering unique features that appeal to its particular preferences or needs.

Generic Business Strategies

Broad marketing approaches or plans that businesses can use to attain competitive advantage, typically classified into cost leadership, differentiation, and focus strategies.

Four Actions Grid

A strategic tool used in blue ocean strategy to redefine the value proposition by determining what to eliminate, reduce, raise, and create.

Blue Ocean Strategy

A business strategy that focuses on creating a new market space (or "Blue Ocean") that is uncontested and makes competition irrelevant.