Ending Work in Process Inventory in the Assembly Department Consists

question 61

Multiple Choice

Ending Work in Process inventory in the Assembly Department consists of 700 units that are 50% complete with respect to conversion costs. The beginning inventory consisted of 2,000 units. During the month, 6,000 units were started. How many equivalent units will be used in the cost per equivalent unit calculation for conversion costs?

• A) 7,650 units
• B) 7,300 units
• C) 8,000 units
• D) 6,700 units

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Definitions:

Profit Center

A profit center is a branch or division of a company that is treated as a separate unit for the purpose of assessing its revenue-generating ability and profitability.

Department Manager

A professional who oversees the operations and employees of a specific department within a company, ensuring goals and objectives are met.

Authority

The authority or capacity to command, make choices, and ensure compliance.

Responsibility Accounting Reports

Financial reports that measure the financial performance of different segments or departments of an organization, attributing revenues and expenses to the managers responsible.