Suppose Smith Started 100,000 Units During the Period, Transfers 75,000

question 1

Multiple Choice

Suppose Smith started 100,000 units during the period, transfers 75,000 units to finished goods and estimates that 25,000 units still in process are only 20 percent complete.What is the number of equivalent units in WIP inventory at the end of the period?

• A)20,000
• B)5,000
• C)15,000
• D)60,000
• E)80,000

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Definitions:

Marginal Cost

The rise in cost due to the production of an extra unit of a product or service.

Marginal Benefit

Marginal benefit refers to the extra benefit received from the consumption or use of an additional unit of a good or service.

R&D Spending

R&D Spending refers to the money allocated by businesses or governments towards research and development of new products or services.

Interest-Rate Cost-Of-Funds

The interest rate that banks and other financial institutions charge each other for loans, often used as a benchmark for other interest rates.