Crafton Corporation Crafton Corporation Has the Following Information for the Current

question 43

Multiple Choice

Crafton Corporation Crafton Corporation has the following information for the current month:
All materials are added at the start of the production process.Crafton Corporation inspects goods at 75 percent completion as to conversion.
Refer to Crafton Corporation.What are equivalent units of production for material assuming weighted average is used?

• A)107,000
• B)116,500
• C)120,000
• D)115,000

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Definitions:

Aggregate Demand

Aggregate desire for goods and services within an economy at different price points, during a certain period.

Price Level

A measure of the average prices of goods and services in an economy at a specific time, often compared over time to assess inflation or deflation.

Equilibrium Output

The level of output where the aggregate supply equals aggregate demand, meaning there is no tendency for the economy to change size.

Short-Run Aggregate Supply

Shows the relationship between the price level and the quantity of goods and services that firms are willing and able to supply in the short term, holding some inputs fixed.