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:

Horizontal Demand

Horizontal Demand describes a market condition where the demand for a product is exceedingly elastic, indicating that a slight change in price can lead to a significant change in the quantity demanded.

Xerox

A multinational corporation known for its photocopiers, printers, and digital document solutions, symbolizing photocopying.

IBM

International Business Machines Corporation, a multinational technology company known for its computer hardware, software, and IT services.

Microsoft

A global technology company known for its software products, including the Windows operating system and Office suite.