Sparky Corporation Uses the FIFO Method of Process Costing

question 178

Multiple Choice

Sparky Corporation uses the FIFO method of process costing.The following information is available for February in its Molding Department: Units:
Beginning Inventory: 25,000 units,100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units,100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $43,000.
Costs in beginning Work in Process - Conversion: $48,850.
Costs incurred in February - Direct Materials: $287,000.
Costs incurred in February - Conversion: $599,150.
-Calculate the equivalent units of conversion.

• A)165,000
• B)130,250
• C)140,000
• D)144,000
• E)110,000

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Definitions:

Unilateral Mistake

A situation in contract law where only one party is mistaken about a material fact regarding the contract terms or subject matter.

Rescission

The legal act of canceling or terminating a contract, returning all parties involved to their original positions before the contract was made.

Renegotiation

is the process of revising the terms of an existing agreement or contract, often to reflect changed conditions or to improve the terms.

Professional Position

A role or job that requires specialized knowledge, training, and often a formal qualification.