End Item a Is Made by Assembling 2 Parts of B

question 4

Multiple Choice

End item A is made by assembling 2 parts of B and 4 parts of C. Part C is made from 3 parts of D and 2 parts of E. Gross requirements for end item A are 100 units. What is the net requirement for part C?

• A) 70 units
• B) 200 units
• C) 125 units
• D) 100 units

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Definitions:

Purchase

The process of purchasing products, services, or assets by paying money or something of similar value.

Merchandise

Goods that are bought and sold in the normal course of business, typically in a retail or wholesale setting.

Credit

An accounting entry that increases liabilities and equity accounts or decreases assets and expense accounts, recorded on the right side of a ledger.

Defective Goods

Items that fail to meet quality standards due to flaws or faults, rendering them unsaleable or requiring correction.