Rally Gifts Uses Process Costing

question 126

Multiple Choice

Rally Gifts uses process costing. In its Forming Department, all the materials are added at the beginning of processing. At the end of the year, 6,000 units remain in Work in Process inventory in the department. During the year, 54,000 units were completed and transferred out and 55,000 units were started. How many equivalent units will be used in the cost per equivalent unit calculation for material costs?

• A) 61,000 units
• B) 54,000 units
• C) 60,000 units
• D) 48,000 units

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Definitions:

Corporate Bond

A debt security issued by a corporation to raise funding, promising to repay the principal along with interest at specified dates.

TIPS Bond

Treasury Inflation-Protected Securities, a type of U.S. government bond designed to help investors protect against inflation by adjusting the principal value based on changes in the consumer price index.

Coupon Rate

The percentage of a bond's face value that is annually paid as interest by the bond.

Par Value

The nominal value of a bond or the stated value of stock as documented in the company's charter, frequently utilized in official paperwork.