Super-Tech Industries Had the Following Department Information About Physical Units

question 69

Multiple Choice

Super-Tech Industries had the following department information about physical units and percentage of completion: $\begin{array}{ll}&\underline{\text { Physical Units }}\\\text { Work in process, June } 1(75 \%) & 2,000 \\\text { Completed and transferred out } & 4,500 \\\text { Work in process, June } 30(50 \%) & 3,000\end{array}$
If materials are added at the beginning of the production process, what is the tatal number of equivalent units during June for conversion costs if the weighted-average method is used?

• A)3,750
• B)7,500
• C)8,000
• D)6,000

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Definitions:

Shortage

A situation in which the demand for a product or service exceeds the available supply.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Equilibrium Quantity

The amount of products or services available and sought after at the equilibrium price, a point where the supply and demand in the market equalize.

Price Ceilings

Government-imposed limits on how high a price can be charged for a product or service.