A Department Adds Raw Materials to a Process at the Beginning

question 125

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; 80,000 units were started into production in January; and there were 20,000 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 materials for the month of January?

• A)88,000 equivalent units.
• B)72,000 equivalent units.
• C)60,000 equivalent units.
• D)80,000 equivalent units.

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Definitions:

Systematic Risk

Risk factors common to the whole economy; also called market risk or nondiversifiable risk.

Diversified Portfolio

An investment strategy that involves spreading investments across various financial instruments, industries, and other categories to minimize risk.

Rate of Return

A financial metric used to calculate the percentage profit or loss of an investment relative to its cost.

Beta Risk

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.