For Units That Are Completed and Transferred Out in a Firm

question 21

Multiple Choice

For units that are completed and transferred out in a firm that uses the weighted average method of process costing:

• A)the number of units that came from beginning inventory is the same as the number of units that were started during the period.
• B)the number of equivalent units for direct materials is the same as the number of equivalent units for conversion cost.
• C)the number of equivalent units is less than the number of physical units.
• D)the number of equivalent units is more than the number of physical units.

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Definitions:

Gasoline Market

The supply, demand, and trading of gasoline as a commodity, including its production and distribution.

Equilibrium

An equilibrium where demand from the market matches its supply, stabilizing prices as a consequence.

Substitute

A product or service that can be used in place of another to satisfy the same needs or desires.

Margarine

A spread used for flavoring, baking, and cooking, made primarily from vegetable oils as an alternative to butter.