A Process with No Beginning Work in Process, Completed and Transferred

question 108

Multiple Choice

A process with no beginning work in process, completed and transferred out 95,000 units during a period and had 50,000 units in the ending work in process inventory that were 30% complete.The equivalent units of production for the period were:

• A)95,000 equivalent units.
• B)145,000 equivalent units.
• C)110,000 equivalent units.
• D)47,500 equivalent units.

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Definitions:

Basic Assumptions

Fundamental beliefs or principles that underlie the financial accounting system, including economic entity, monetary unit, time period, and going concern.

Internal Growth Rates

The maximum rate at which a company can expand using only internal financial resources without resorting to borrowing or seeking new equity investment.

External Financing Needs (EFN)

The amount of funding a business requires from external sources to finance its planned growth or expansion activities.

Negative EFN

External Financing Needed; a scenario where a negative value indicates a surplus of funds, implying no external financing is required for growth or operations.