Reference: 04-11
the Following Data Relate to the Forming Department

question 2

Multiple Choice

Reference: 04-11
The following data relate to the Forming Department of Jimbob Co. for a recent month: $$\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Number of } \\\text { Units }\end{array} & \begin{array} { l } \text { Conversion Costs } \\\text { (Percent Complete) }\end{array} \\\hline \text { Beginning work in process inventory } & 9,000 & 60 \% \\\hline \text { Units started into production } & 45,000 & - \\\hline \text { Units completed and transferred out } & 46,000 & - \\\hline \text { Ending work in process inventory } & 8,000 & 25 \% \\\hline\end{array}$$ All materials are added prior to the beginning of work in the Forming Department.
-Assuming that Jimbob Co. materials would be?

• A)46,000 units.
• B)48,000 units.
• C)54,000 units.
• D)45,000 units.

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Definitions:

Marginal Tax Rate

The rate at which an additional dollar of income would be taxed, representing the individual's tax bracket.

Depreciation Life

The period over which a fixed asset is expected to depreciate until it reaches its salvage value.

Market Value

The ongoing rate at which you can buy or sell an asset or service within the open market.

Cost of Capital

The earnings rate a firm must reach through its investments to uphold its market worth and secure financing.