Sepulveda Corporation uses a process costing system to manufacture laptop PCs. The following information summarizes operations for its VeryLite model during the quarter ending March 31, Year 1: Direct Units Materials $ 60,000 Work-in-process inventory, January 1 Started during the quarter Completed during the quarter Work-in-process inventory, March 31 Costs added during the quarter 100 500 400 200 $840,000 Beginning work-in-process inventory was 50% complete for direct materials. Ending work-in-process in- ventory was 75% complete for direct materials. What were the equivalent units for direct materials for the quarter using the FIFO method? 1. 450 2. 500 4. 600 3. 550
Sepulveda Corporation uses a process costing system to manufacture laptop PCs. The following information summarizes operations for its VeryLite model during the quarter ending March 31, Year 1: Direct Units Materials $ 60,000 Work-in-process inventory, January 1 Started during the quarter Completed during the quarter Work-in-process inventory, March 31 Costs added during the quarter 100 500 400 200 $840,000 Beginning work-in-process inventory was 50% complete for direct materials. Ending work-in-process in- ventory was 75% complete for direct materials. What were the equivalent units for direct materials for the quarter using the FIFO method? 1. 450 2. 500 4. 600 3. 550
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Sepulveda Corporation uses a process costing system to manufacture laptop PCs. The
following information summarizes operations for its VeryLite model during the quarter ending March 31,
Year 1:
Direct
Units
Materials
$ 60,000
Work-in-process inventory, January 1
Started during the quarter
Completed during the quarter
Work-in-process inventory, March 31
Costs added during the quarter
100
500
400
200
$840,000
Beginning work-in-process inventory was 50% complete for direct materials. Ending work-in-process in-
ventory was 75% complete for direct materials. What were the equivalent units for direct materials for the
quarter using the FIFO method?
1. 450
2. 500
4. 600
3. 550
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