The Information Below Was Obtained from the Records of the First

question 86

Multiple Choice

The information below was obtained from the records of the first processing department of Christine Corporation for the month of July. The company uses the weighted-average method in its process costing system.
$\begin{array} { |l | r | r | } \hline & \text { Number of Units } & \begin{array} { r } \text { Labour and overhead } \\\text { percentage complete }\end{array} \\\hline \begin{array} { lrr } \text { Work in process inventory, } \\\text { July 1 }\end{array} & 20,000 & 40 \% \\\hline \text { Started during the month } & 70,000 & \\\hline \begin{array} { l } \text { Completed during the } \\\text { month }\end{array} & 80,000 & \\\hline \begin{array} { l } \text { Work in process inventory, } \\\text { July 31 }\end{array} & ? & 25 \% \\\hline\end{array}$ All materials are added at the beginning of the manufacturing process.



-What are the equivalent units of production for labour and overhead for the month?

• A) 70,000 units.
• B) 90,000 units.
• C) 80,000 units.
• D) 82,500 units.

---

Definitions:

Estimated Future Returns

Projections or forecasts about the potential gains or incomes from investments over a future period.

Sales Discounts

A reduction in the price of goods or services offered to customers, usually to prompt early payment or reward bulk purchases.

Gross Price Method

Gross Price Method involves recording inventory at its gross price, before deducting any trade discounts or rebates.

Allowance for Doubtful Accounts

An accounting concept referring to an estimate of the amount of receivables that may not be collected, which is used to reduce the total accounts receivable reported on the balance sheet.