During the current month,Ringo Company started 50,000 units of product and transferred 40,000 fully completed units to finished goods.The final work in process inventory was 41 percent complete as to labor operations.There was no initial work in process,and actual labor hours were 180,000 for the period.Each unit should have required 4 direct labor hours to be produced at standard.The total standard hours allowed for the period are

Question

Quizplus · Accepted Answer

The standard direct labor hours required for 50,000 units = 50,000 x 4 = 200,000
The direct labor hours for 40,000 completed units = 40,000 x 4 = 160,000
The labor hours required to complete the final work in process inventory = (50,000 - 40,000) x 41% x 4 = 16,400
Total standard hours allowed for the period = 200,000 + 16,400 - 180,000 = 176,400. Therefore, the correct answer is B.

During the Current Month,Ringo Company Started 50,000 Units of Product