Cherrington Company Uses a Process Costing System

question 51

Multiple Choice

Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows:



-Using the FIFO method, the equivalent units for May for materials are:

• A) 82,400 units
• B) 104,000 units
• C) 107,200 units
• D) 108,000 units

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Definitions:

Air Conditioners

Devices designed to regulate the temperature and humidity within a space, contributing to human comfort and preservation of goods.

Fire Extinguishers

Devices designed to suppress fires through the application of a substance such as foam, water, or dry chemical.

Ultraviolet Radiation

A form of electromagnetic radiation that comes from the sun and artificial sources like tanning beds, which can cause skin damage, eye problems, and increase the risk of skin cancer.

Reactive Compounds

Substances that readily engage in chemical reactions with other materials due to their unstable electron configurations.