A Department Had the Following Information for the Month What Are the Equivalent Units of Production for Materials?
A)150,000

question 9

Multiple Choice

A department had the following information for the month: $\begin{array}{lr}\text { Total materials costs } & \$ 300,000 \\\text { Conversion cost per unit } & \$ 3.00 \\\text { Total manufacturing cost per unit } & \$ 5.00\end{array}$ What are the equivalent units of production for materials?

• A)150,000.
• B)100,000.
• C)60,000.
• D)Cannot be determined

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Definitions:

Function Based Divisions

Organizational structuring where a company is divided into departments based on functions such as marketing, finance, or production.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, that sells goods or services to make a profit.

M-Form Organization

A multi-divisional organizational structure, characterized by a set of autonomous divisions organized under a centralized corporate headquarters.

Divisions Coordination

The process of ensuring various departments or units within an organization work together efficiently towards common goals.