At the End of the Current Accounting Period, Account Balances

question 44

Multiple Choice

At the end of the current accounting period, account balances were as follows: Cash, $180,000; Accounts Receivable, $75,000; Common Stock, $20,000; Retained Earnings, $65,000. Liabilities for the period were:

• A)$ 70,000.
• B)$170,000.
• C)$190,000.
• D)$210,000.

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Definitions:

Conversion Costs

The total expenses of direct labor plus the manufacturing overheads used in transforming raw materials into completed products.

Equivalent Units

A measure used in process costing that represents the incomplete work in a production process as a certain number of fully completed units.

Cost Reconciliation

The process of analyzing and adjusting the differences between the reported cost and the actual cost to ensure accuracy in financial records.

Equivalent Units

A concept used in cost accounting to normalize mixed units of production into a singular unit count, facilitating cost analysis.