Heara Ltd Manufactures Metal Sheets, and Uses the FIFO Process

question 39

Multiple Choice

Heara Ltd manufactures metal sheets, and uses the FIFO process costing. On 1 May the Rolling Department had 3000 units work in progress, which were 50 per cent completed as to conversion costs. During May 8000 units were completed and transferred out. The remaining work in progress on 30 May was 2000 units at 50 per cent complete in terms of conversion rate. What is the equivalent unit of conversion?

• A) 2000 units
• B) 7500 units
• C) 9000 units
• D) 10 500 units

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Definitions:

Welfare Capitalism

A practice in which businesses provide welfare services to their employees, such as good working conditions, insurance, and retirement benefits, as a way to improve worker satisfaction and loyalty.

Employee Representation Plans

Workplace mechanisms, often outlined in company policy, that provide employees a platform to voice their concerns, feedback, and suggestions regarding their working conditions or environment.

Voice in the Workplace

The means by which employees express their opinions, concerns, or suggestions about their work environment, which can influence managerial decisions and workplace policies.

Open Shops

are workplaces where union membership is not required as a condition for employment, allowing employees the choice to join or not to join a labor union.