Answer to Question #62844 in Accounting for Bob

Question

Canadian Oil Company manufactures cooking oils. All direct materials are added at the beginning of the production process. The company currently uses the FIFO method. Data for the month of July is listed below.

Production​ data:
Beginning work−in-process
​100,000 units
   
Units started during the period
​200,000 units

Completed and transferred out
​270,000 units

Manufacturing​ cost:
Beginning work−in−process
​$176,000

Direct materials used
​$244,000

How many units were started and completed with respect to direct materials during the​ month?

a. 170000
b. 330000
c. 270000
d. 300000
e. 200000

I'm thinking it's either 170,000 as that would be based off of the 170000 new units completed, or I was also thinking that it could be 200,000 since it says all Direct Materials are added at the beginning of the process which could mean that the work with regards to direct materials is already done even if units aren't finished. Not sure

Answer 1

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