Material Is Added at the Beginning of a Process in a Process

question 97

Multiple Choice

Material is added at the beginning of a process in a process costing system.The beginning Work in Process Inventory for the process was 30 percent complete as to conversion costs.Using the FIFO method of costing,the number of equivalent units of material for the process during this period is equal to the

• A)beginning inventory this period for the process.
• B)units started and completed this period in the process.
• C)units started this period in the process plus the beginning Work in Process Inventory.
• D)units started and completed this period plus the units in ending Work in Process Inventory.

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Definitions:

Current Ratio

A measure of a company’s capability to settle short-term debts using its current assets.

Acid-Test Ratio

A stringent indicator of a company's short-term liquidity, calculated by dividing liquid assets by current liabilities, excluding inventory from assets.

Financial Stability

The condition of having strong financial health, characterized by a solid balance sheet, manageable debt, and the capability to meet short and long-term obligations.

Operating Efficiency

A measure of how well a company utilizes its resources to generate profit without unnecessary waste.