Bennett Company Uses the FIFO Method in Its Process Costing

question 43

Multiple Choice

Bennett Company uses the FIFO method in its process costing system.During April the equivalent units of production with respect to conversion costs totaled 24,600 units.Work in process inventory on April 1 consisted of 8,000 units,40% complete with respect to conversion costs.A total of 25,000 units were started into production during the month and 20,000 units were transferred to finished goods.Based on this information,Bennett Company's work in process inventory on April 30 consisted of:

• A)13,000 units,40% complete with respect to conversion costs
• B)5,000 units,40% complete with respect to conversion costs
• C)13,000 units,60% complete with respect to conversion costs
• D)4,600 units,40% complete with respect to conversion costs

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Definitions:

Core Principles

Fundamental beliefs or values that serve as the foundation for behavior, decision-making, and actions within an organization or individual's life.

Professional Selling

The process and activities required to effectively develop, manage, enable, and execute a mutually beneficial, interpersonal exchange of goods and/or services for equitable value.

Break-Even Point

the point at which total costs and total revenue are equal, meaning a business is neither making a profit nor taking a loss, serving as a critical financial analysis metric.

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.