Agee Company Uses a Process-Costing System for Its Single Product

question 60

Multiple Choice

Agee Company uses a process-costing system for its single product. Material A is added at the beginning of the process; in contrast, material B is added when the units are 50% complete. The firm's ending work-in-process inventory consists of 4,000 units that are 75% complete. Which of the following correctly expresses the equivalent units of production with respect to materials A and B in the ending work-in-process inventory?

• A) A, 3,000; B, 0.
• B) A, 3,000; B, 3,000.
• C) A, 4,000; B, 0.
• D) A, 4,000; B, 4,000.
• E) A, 4,000; B, 3,000.

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Recession Phase

is a period of temporary economic decline during which trade and industrial activities are reduced, typically identified by a fall in GDP in two successive quarters.

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A stage in the economic cycle where activity begins to increase again after a period of recession or depression, marked by rises in employment, consumer spending, and production.

Business Cycle

The cyclic phenomenon of economic expansion and contraction experienced by an economy over time.

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A Trough in economics is a phase in the business cycle where activity is at its lowest point, preceding a recovery and expansion phase.