The Following Information Is Provided by Adametz Company

question 2

Multiple Choice

The following information is provided by Adametz Company:

The units in ending WIP Inventory were 90% complete for materials and 50% complete for conversion costs.
What are the total equivalent units for direct materials?

• A)7,080
• B)3,780
• C)4,200
• D)7,500

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Definitions:

Currency Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of another.

Licensing

A business arrangement in which one party allows another to use its trademark, patent, or technology in exchange for a fee or royalty.

Franchising

A method of doing business wherein a franchisor licenses trademarks and proven methods of doing business to a franchisee in exchange for a recurring payment, and usually a percentage of gross sales or gross profits as well as the annual fees.

Indirect Exporting

The process of selling products to a foreign market through an intermediary, such as an export trading company or an export management company, rather than directly to the consumer or retailer.