7. During the current month, Ringo Company started 50,000 units of product and t

Question

7. 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 40 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 7 options: A. 180,000. B. 176,000. C. 171,000. D. 186,000.

Explanation / Answer

Total equivalent units worked: 40000 + 10000 x 0.4 = 44000 EU Standard hours allowed = 44000 x 4 = 176000 hours (B) is the correct answer. Hope this helps!

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