Williams Company Computed Its Cost Per Equivalent Unit for Direct

question 140

Multiple Choice

Williams Company computed its cost per equivalent unit for direct materials to be $2.60 and its cost per equivalent unit for conversion to be $3.75.A total of 250,000 units of product were completed and transferred out as finished goods during the month,and 36,000 of equivalent units remained unfinished at the end of the month.The amount that should be reported in Finished Goods Inventory is:

• A)$650,000.
• B)$135,000.
• C)$1,816,100.
• D)$1,587,500.
• E)$228,600.

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Definitions:

Normal Debit Balance

Refers to the expected debit balance in certain types of accounts, like assets, expenses, and losses, indicating an increase in these accounts.

Revenue

The comprehensive sum of money a company makes from its primary business operations, namely selling goods or providing services.

Liabilities

A company's financial debts or obligations that arise during the course of business operations, required to be settled over time through the transfer of economic benefits.

Creditors

Individuals or entities to whom a company owes money or has financial obligations, typically arising from purchase of goods or services on credit.