Lily Corporation Uses Process Costing to Calculate the Cost of Manufacturing

question 10

Multiple Choice

Lily Corporation uses process costing to calculate the cost of manufacturing pool systems. Beginning work in process included 7,000 units 50 percent complete. During the month 15,000 units were completed, 1,400 units remain in work in process at 80 percent complete. Using the average cost method, the equivalent units are:

• A)14,000
• B)18,720
• C)16,120
• D)19,900

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Definitions:

Diversity of Citizenship

A condition for federal court jurisdiction where the parties involved are citizens of different U.S. states or a foreign country.

Federal Court

Courts of limited jurisdiction that hear cases involving federal laws, interstate matters, and other cases as authorized by the Constitution.

State Law

Laws that are enacted and enforced by individual states within the United States, addressing matters not specifically covered by federal law.

Diversity-of-Citizenship

Diversity-of-Citizenship is a legal concept in U.S. federal court jurisdiction, referring to cases where parties are citizens of different U.S. states or a foreign country.