A Department Adds Raw Materials to a Process at the Beginning

question 101

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 conversion costs for the month of January?

• A)60,000 equivalent units.
• B)72,000 equivalent units.
• C)68,000 equivalent units.
• D)80,000 equivalent units.

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Definitions:

APR

The Annual Percentage Rate (APR) is a measure of the cost of borrowing that includes interest and other fees, shown as a yearly rate.

Compound Interest

The concept of earning interest on previously earned interest. A sum earning compound interest grows exponentially over time.

Interest

The expense associated with taking out a loan or the earnings from an investment, usually quantified as a percent of the initial amount.

Annual Percentage Rate

The annual rate charged for borrowing or earned through an investment, which represents the actual yearly cost over the term of a loan.