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

question 19

Multiple Choice

Super-Tech Industries had the following department information about physical units and percentage of completion: $\begin{array}{ll}&\text { Physical Units }\\\text { Work in process, June } 1(75 \%) & 2,000 \\\text { Completed and transferred out}&4,500 \\\text { Work in process. June } 30(50 \%) &3,000\end{array}$ If materials are added at the beginning of the production process, what is the total 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:

HML Beta

A measure used in finance to assess the sensitivity of an asset or portfolio to a value factor, defined as high minus low book-to-market stocks.

SMB Beta

Stands for Small Minus Big Beta, a metric used in finance to measure a stock's sensitivity to the SMB factor, which represents the excess return of small-cap stocks over large-cap stocks.

Market Beta

A measure of a stock's volatility in relation to the overall market; indicates the stock's sensitivity to market movements.

Factor Portfolio

A portfolio constructed to have a high sensitivity to specific risk factors, aiming to capture the risk premiums associated with those factors.