A Department Adds Raw Materials to a Process at the Beginning

question 151

Multiple Choice

A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 60,000 units were started into production in January; and there were 15,000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for conversion costs for the month of January?

• A) 45,000 equivalent units.
• B) 54,000 equivalent units.
• C) 51,000 equivalent units.
• D) 60,000 equivalent units.

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Definitions:

Protective Tariffs

Taxes imposed on imported goods to protect domestic industries from foreign competition by making the imported goods more expensive.

Domestic Producers

Manufacturers or providers of goods and services within a country's own borders, as opposed to foreign producers.

Equilibrium World Price

The price at which the quantity of a good demanded globally equals the quantity supplied across the world, without any trade barriers.

Domestic Quantity Supplied

the total amount of a good or service that producers in a domestic market are willing and able to supply at a given price level.