Use the Following MRP Record to Answer the Question

question 120

Multiple Choice

Use the following MRP record to answer the question. What will be the projected on- hand inventory quantity in week 8?

• A) less than or equal to 30 units
• B) greater than 30 units but less than or equal to 60 units
• C) greater than 60 units but less than or equal to 90 units
• D) greater than 90 units

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Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overheads incurred to convert raw materials into finished goods.

Direct Materials

Primary elements that are directly involved in the production process of particular products or services.

Equivalent Units

A method used in cost accounting to express partially completed goods in terms of complete units.

Units Finished

The quantity of completed products available for sale or distribution at the end of an accounting period.