In the Month of June a Department Had 20000 Units

question 107

Multiple Choice

In the month of June a department had 20000 units in beginning work in process that were 70% complete. During June 90000 units were transferred into production from another department. At the end of June there were 10000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process. The equivalent units of production for materials for June were

• A) 100000 equivalent units.
• B) 110000 equivalent units.
• C) 114000 equivalent units.
• D) 90000 equivalent units.

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Definitions:

External Financing

Funds a company acquires from outside sources, such as bank loans, issuing bonds, or selling stock, to support its operations and growth initiatives.

Full Capacity

Full capacity refers to the maximum level of output that a company can sustain over a period, utilizing all available resources efficiently.

External Financing Needed

The amount of funding a company must seek from outside sources to finance its planned activities when internal cash flow is insufficient.

Profit Margin

This financial ratio measures the amount of net income earned with each dollar of sales by comparing net income to net sales.