A Production Department's Output for the Most Recent Month Consisted

question 80

Multiple Choice

A production department's output for the most recent month consisted of 8,000 units completed and transferred to the next stage of production and 5,000 units in ending Work in Process inventory.The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs.Calculate the equivalent units of production for the month,assuming the company uses the weighted average method.

• A)6,500 units.
• B)9,000 units.
• C)13,000 units.
• D)5,500 units.
• E)10,500 units.

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Definitions:

Cash Flow Hedge

A hedge of the exposure to the variability in cash flows that is attributable to a particular risk that is associated with all, or some component of, a recognized asset or liability or a highly probable forecast transaction and could affect profit or loss.

Forward Contract

A customized contract between two parties to buy or sell an asset at a specified price on a future date.

Recognised Borrowings

Loans and other forms of financial debt that are acknowledged on a company's balance sheet as liabilities.

Forward Exchange Contract

An agreement between two parties to exchange a specified quantity of one currency for another at a specified exchange rate on a specified future date.