Figure 5-3 Materials and Conversion Are Incurred Uniformly Throughout the Progress

question 20

Multiple Choice

Figure 5-3 $\begin{array}{lr} & \text { Units } \\\text { Work in progress, May } 1 \text { (10\% complete) } & 2,000 \\\text { Started in May } & 17,000 \\\text { Work in progress, May } 31 \text { (20\% complete) } & 3,000\end{array}$ Materials and conversion are incurred uniformly throughout the progress.
-Refer to Figure 5-3. Equivalent units of production for materials using the weighted average method would be

• A)16,600.
• B)14,800.
• C)17,800.
• D)18,860.

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Definitions:

Merchandise Inventory

The goods a company holds for the purpose of sale to customers in the normal course of business.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal, reflecting the actual cash value of inventory.

Accounts Receivable

The sum customers owe a corporation for goods or services delivered but not yet compensated.

Credit Balance

A situation in an account where the sum of credits exceeds the sum of debits.