Department W Had 2,400 Units, One-Third Completed at the Beginning

question 182

Multiple Choice

Department W had 2,400 units, one-third completed at the beginning of the period; 16,000 units were transferred to Department X from Department W during the period; and 1,800 units were one-half completed at the end of the period.  Assume the completion ratios apply to direct materials and conversion costs.
What is the equivalent units of production used to compute unit conversion cost on the cost of production report for Department W? Assume the company uses FIFO.

• A) 16,100 units
• B) 13,600 units
• C) 15,000 units
• D) 18,500 units

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Definitions:

Risk-Free Rate

The estimated profit percentage from an investment considered free of risk, typically indicated by government bonds' interest rates.

Common Stock

A type of security that represents ownership in a corporation, entitling the holder to vote at shareholder meetings and receive dividends.

Weighted Average Cost of Capital

This refers to the overall cost of capital for a firm, weighted by each capital component's proportion in the overall capital structure.

Market Value of Equity

The total dollar market value of a company's outstanding shares, calculated as share price times the number of shares outstanding.