Gantner Company Had the Following Department Information About Physical Units

question 128

Multiple Choice

Gantner Company had the following department information about physical units and percentage of completion: $\begin{array}{lr}&\text { Physical Units }\\\text { Work in process, May } 1(60 \%) & 60,000 \\\text { Completed and transferred out } & 180,000 \\\text { Work in process, May } 31(40 \%) & 50,000\end{array}$ If materials are added at the beginning of the production process, what is the total number of equivalent units for materials during May?

• A)240,000.
• B)230,000.
• C)224,000.
• D)200,000.

---

Definitions:

High-low Method

A technique used in accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Electrical Cost

The expenses associated with the consumption of electricity by a company or facility.

High-low Method

A technique used in cost accounting to estimate cost behavior and predict future costs based on the highest and lowest levels of activity and their corresponding costs.

Inspection Cost

Expenses incurred to ensure products meet quality standards, including costs of labor, equipment, and facilities used in inspection.