A Company's Beginning Work in Process Inventory Consisted of 20,000

question 24

Multiple Choice

A company's beginning Work in Process inventory consisted of 20,000 units that were 20% complete with respect to direct labor.These beginning units were completed and another 90,000 units were started during the current period.Of those started,60,000 were finished and the remaining 30,000 were 40% complete at the end of the period.Using the weighted-average method,the equivalent units of production with regard to direct labor were:

• A)60,000.
• B)74,000.
• C)76,000.
• D)92,000.
• E)96,000.

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Definitions:

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, outlining assets, liabilities, and equity.

Vertical Analysis

A method of financial statement analysis in which line items are expressed as a percentage of a base figure within the same period.

Ford Motor Company

A multinational automaker headquartered in the United States, known for producing and selling automobiles and commercial vehicles under the Ford brand and luxury cars under the Lincoln brand.

Horizontal Analysis

An analytical approach to finance, examining historical financial records from several periods to spot growth trends and patterns.