Assume Material Is Added at the Beginning of a Process

question 74

Multiple Choice

Assume material is added at the beginning of a process, and the beginning WIP inventory is 30 per cent complete as to conversion costs. Using the FIFO method of costing, the total equivalent units for material for this process during this period is equal to

• A) units started this period in this process.
• B) units started this period in this process plus 70 per cent of beginning inventory.
• C) beginning inventory this period for the process.
• D) units started this period in this process plus the beginning inventory.

Identify various billing systems used in medical offices, including pegboard and double-entry systems.

Understand financial responsibilities in a medical setting, including payroll and the financial responsibilities of a patient or guardian.

Comprehend the laws and regulations affecting telephone solicitation and patient financial agreements.

Understand the importance and process of financial reporting and daily log maintenance in a medical office.

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Definitions:

Work in Process Inventory

The account that tracks the costs associated with partially completed goods that are still in the process of being manufactured.

Unadjusted Cost of Goods Sold

Unadjusted Cost of Goods Sold (COGS) is the initial calculation of all costs directly associated with the production of goods before any adjustments for inventory changes or other factors.

Journal Entry

A record in the accounting journal that represents a business transaction and its effect on the accounts.

Manufacturing Overhead

All indirect costs associated with the production process, from maintenance expenses of the production facility to the supplies needed for operation.