Wedtec Enterprises, Which Began Operations on January 1, Appropriately Uses

question 46

Multiple Choice

Wedtec Enterprises, which began operations on January 1, appropriately uses the installment method of accounting. The following information is available for its first year:

What is the total amount of Wedtec's installment sales for the first year?

• A) $300,000
• B) $345,000
• C) $425,000
• D) $525,000

---

Definitions:

Beginning Work in Process Inventory

The inventory of partially finished goods at the start of an accounting period.

Equivalent Units

The product of the number of partially completed units and their percentage of completion with respect to a particular cost. Equivalent units are the number of complete whole units that could be obtained from the materials and effort contained in partially completed units.

Beginning Work in Process Inventory

The value of partially finished goods that are in production at the start of an accounting period.

Ending Work in Process Inventory

The value of goods in various stages of production but not yet completed at the end of an accounting period.