Cohen Manufacturing Is Trying to Determine the Equivalent Units for Conversion

question 45

Multiple Choice

Cohen Manufacturing is trying to determine the equivalent units for conversion costs with 3,000 units of ending work in process at 80% completion and 21,000 physical units that are 100% complete as to materials. There are no beginning units in the department. Materials are added at the beginning of the process, and conversion costs occur evenly throughout the entire production period. What is the equivalent units for conversion costs for the current period?

• A) 24,000.
• B) 23,400.
• C) 2,400.
• D) 20,400.

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Definitions:

Double Taxation

The financial imposition where income taxes are paid twice on the same source of earned income, often in the context of corporate profits taxed both at the corporate level and again when distributed as dividends.

Independent Contractors

Workers who provide services to a business under terms specified in a contract, rather than as employees.

Licensing

A process where a company allows another to use its intellectual property or technology in exchange for a fee or royalty.

Royalties

A share of the income of a business paid by a franchisee to the franchisor.