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On April 6,Lopez Co

question 14

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On April 6,Lopez Co.purchased $5,000 of merchandise,terms 1/15,n/30.Lopez Co.paid for the purchase on April 26.The entry to record the payment on April 26 in a perpetual inventory system includes which of the following?


Definitions:

Equivalent Units

A concept used in cost accounting to convert partially completed goods into a number of complete units for inventory and production cost purposes.

Conversion Costs

The total expenses of direct labor and overhead costs involved in transforming raw materials into completed goods.

Materials

Refers to the raw inputs or components that are used in the manufacturing or production process to create finished goods.

Units Transferred Out

The total number of finished items moved from the production area to finished goods inventory during a specific period.

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