In April, the Beginning Work in Process Inventory for Department

question 76

Multiple Choice

In April, the beginning work in process inventory for Department 2 was 40% complete and the ending work in process inventory was 90% complete. Under the FIFO method, the number of equivalent units of production for transferred-in costs for April is equal to the number of units

• A) Started and completed in April plus 90% times the number of units in ending inventory for April
• B) started and completed in April plus 40% times the number of units in beginning inventory plus 90% times the number of units in ending inventory for April
• C) Started and completed in April plus 40% times the number of units in beginning inventory plus 90% times the number of units in ending inventory for April
• D) Started in April

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Definitions:

Percentage of Receivables Method

The percentage of receivables method is an accounting technique used to estimate the amount of a company's accounts receivable that will not be collected, based on past experience.

Allowance for Doubtful Accounts

An accounting concept representing the estimated uncollectible amounts from customers' outstanding accounts.

Cash Realizable Value

The amount of cash expected to be obtained from the current sale or disposal of an asset after deducting any selling costs.

Accounts Receivable

Amounts outstanding from customers to a firm for goods or services that have been supplied but remain unpaid.