A Process with 1600 Units of Beginning Work in Process

question 148

Multiple Choice

A process with 1600 units of beginning work in process completed and transferred out 25000 units during a period. There were 10000 units in the ending work in process that were 50% complete as to conversion costs. Materials are added 80% at the beginning of the process and 20% when the units are 90% complete. How much is equivalent units of production for the period for material costs?

• A) 29000 equivalent units.
• B) 35000 equivalent units.
• C) 27000 equivalent units.
• D) 33000 equivalent units.

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Definitions:

Experience-curve Pricing

A pricing strategy that reduces prices based on the gained efficiency and cost savings from increased production levels over time.

Hydroelectric Power Plants

Facilities that generate electricity by using the flow of water to drive turbines, a renewable and clean source of energy.

Cost-plus-fixed-fee Pricing

A pricing strategy where a fixed fee is added on top of the costs associated with producing and selling a product.

Cost-plus-fixed-fee Pricing

A pricing method where the selling price is determined by adding a fixed fee to the cost of the product or service.