A Process with No Beginning Work in Process, Completed and Transferred

question 42

Multiple Choice

A process with no beginning Work in Process, completed and transferred out 10,000 units during a period and had 5,000 units in the ending Work in Process that were 50% complete.How much is equivalent units of production for the period for conversion costs if the weighted-average method is used?

• A)12,500 equivalent units
• B)15,000 equivalent units
• C)17,500 equivalent units
• D)7,500 equivalent units

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Definitions:

Novation

The act of replacing an original party in a contract with a new party, with the consent of all involved, effectively creating a new contract.

Previous Valid Obligation

A duty or commitment that has been legally recognized and must be fulfilled as previously agreed or contracted.

Novation

The act of replacing an old obligation with a new one, thereby extinguishing the original obligation.

Consideration

In contract law, the benefit or value that each party agrees to give or receive as part of a legal agreement.