During March, the Production Department of a Process Manufacturing System

question 129

Multiple Choice

During March, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of the units transferred, 25,000 were in process at the beginning of March and 110,000 were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor. At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. Compute the number of equivalent units with respect to both materials and direct labor respectively for March using the FIFO method.

• A) 165,000; 165,000.
• B) 135,000; 119,000.
• C) 140,000; 130,250.
• D) 165,000; 144,000.
• E) 144,000; 144,000.

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Definitions:

Quarter-end Payments

Financial transactions or payments due at the end of each quarter of a fiscal year.

RRSP

A financial plan in Canada designed to help individuals save for retirement, offering tax advantages.

Compounded Monthly

Interest that is calculated on the principal and the previously earned interest on a monthly basis, leading to the accumulation of increasingly larger amounts.

Month-end Withdrawals

Financial transactions to remove money from an account or investment at the end of the month, often for budgeting or payment purposes.