A Department Had the Following Information for the Month What Are the Equivalent Units of Production for Materials If

question 6

Multiple Choice

A department had the following information for the month: $\begin{array}{cc} \text {Total materials costs. } &\$ 90,000\\ \text { Conversion cost per unit } &\$ 3.00\\ \text { Total manufacturing cost per unit } &\$ 5.00\\\end{array}$


What are the equivalent units of production for materials if the weighted-average methor 5 used?

• A)30,000
• B)11,250
• C)45,000
• D)cannot be determined

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Definitions:

Interest-Bearing Note

A debt instrument that pays interest to the holder at a fixed or variable rate until its maturity.

Bond

A fixed-income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.

Straight-Line Method

A method of depreciation that provides for equal periodic depreciation expense over the estimated life of a fixed asset.

Amortization

The process of gradually writing off the initial cost of an intangible asset over its useful life.