The Activity in Nolan Company's Blending Department for the Month

question 74

Multiple Choice

The activity in Nolan Company's Blending Department for the month of April is given below:
$\begin{array} {| l | r | r | } \hline & \text { Number of Units } & \begin{array} { r } \text { Labour and overhead } \\\text { percentage complete }\end{array} \\\hline \begin{array} { l r } \text { Work in process inventory, } \\\text { April 1 }\end{array} & 8,000 & 50 \% \\\hline \begin{array} { l } \text { Transferred in the during } \\\text { the month }\end{array} & 50,000 & \\\hline \begin{array} { l } \text { Work in process inventory, } \\\text { April 30 }\end{array} & 10,000 & 70 \% \\\hline\end{array}$
All materials are added at the beginning of processing in the Blending Department.


-Using the weighted-average method,what are the equivalent units of production for labour and overhead for the month?

• A) 50,000 units.
• B) 51,000 units.
• C) 47,000 units.
• D) 55,000 units.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Inventory

The goods and materials a business holds for the purpose of resale, production, or repair.

Best-price Requirements

Regulatory or policy stipulations that ensure consumers or buyers are getting the most favorable price available for goods or services, often seen in government procurement.

U.S. Antitrust Law

Legislation aimed at promoting competition and preventing unfair monopolies or practices that could harm consumers or market fairness.