South River Chemicals Pty Ltd Manufactures a Product Called Zybek

question 51

Multiple Choice

South River Chemicals Pty Ltd manufactures a product called Zybek. Direct materials are added at the end of the process and conversion activity occurs uniformly throughout the process. The following data pertain to the month of May.
Using the FIFO method of process costing, calculate the equivalent units of direct materials and conversion activity for the month of May.

• A) DM 75 000; CC 69 400
• B) DM 60 000; CC 60 400
• C) DM 68 000; CC 69 400
• D) None of the given answers

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Definitions:

Variable Costs

Expenses that change in direct proportion to the amount of goods or services produced, including costs for labor and materials.

Net Cash Inflow

The difference between a company's cash inflows and outflows over a specific period, indicating net cash earned.

Net Cash Outflow

The result when the cash outgoings (expenses, payments) of a business exceed the incoming cash flow over a specific period of time.

Project

A temporary endeavor with a defined beginning and end, undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value.