Crafton Corporation Crafton Corporation Has the Following Information for the Current

question 110

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 FIFO?

• A)100,000
• B)96,500
• C)95,000
• D)120,000

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Definitions:

Inventory Shrinkage

The loss of products between manufacture and point of sale, often due to theft, damage, or administrative errors.

Gross Margin

The difference between revenue and cost of goods sold, expressed as a percentage of revenue.

Net Sales

Net sales is the amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Stock Turn Rate

A measure of how quickly inventory is sold and replaced over a given period, indicating the efficiency of inventory management.