The Shaping Department Began June with 5,000 Units Which Were

question 19

Multiple Choice

The Shaping Department began June with 5,000 units which were 50% complete.During
June, the department received another 60,000 units from the prior department and completed 62,000 units.The remaining units were 75% complete as to conversion costs.Materials are added at the beginning of the process.How much are equivalent units for conversion costs in the Shaping Department's Work in Process inventory at the end of June?

• A)3,000 units
• B)5,250 units
• C)2,250 units
• D)1,250 units

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Definitions:

Basis

The amount of investment in property for tax purposes, used to calculate gain or loss on the sale, exchange, or other disposition of the property.

Cash Distribution

Cash Distribution is the payment of funds from a corporation or a financial institution to a shareholder or account holder, often from profits or interest earnings.

Partnership Interest

The share or portion of a partnership's profits and losses that is attributed to each partner.

Equipment

Tangible property used in the operation of a business, such as machinery, computers, and furniture, often subject to depreciation over its useful life.