Lester Corporation Had 8,200 Units of Work in Process on November

question 24

Multiple Choice

Lester Corporation had 8,200 units of work in process on November 1.During November,26,800 units were started and as of November 30,7,900 units remained in production.How many units were completed during November?

• A)16,100.
• B)26,500.
• C)27,100.
• D)42,800.
• E)None of thesE.

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Definitions:

Book Value

The remaining value of a corporation's assets after subtracting its debts, as noted in the balance sheet.

Equity Method

An accounting technique used for recording investments in associate companies, where the investment is initially recorded at cost and adjusted thereafter for the post-acquisition change in the investor's share of the investee's net assets.

Equipment Account

An account on the balance sheet that represents the current value of the equipment owned by a company after adjusting for depreciation and amortization.

Acquisition Method

An accounting approach used for consolidating the financial statements of a parent company and its subsidiaries to present as one entity.