The Assembly Department of Smart Computers Had a Beginning Inventory

question 7

Multiple Choice

The Assembly Department of Smart Computers had a beginning inventory of 5,000 units. During November, it assembled 2,000 units and transferred them to the Packaging Department. It incurred $250,000 in direct materials and $75,000 in conversion costs. The ending inventory in November was 3,000 units which were 100% and 60% complete with respect to materials and conversion costs, respectively. Calculate the total equivalent units of production for conversion costs for November.

• A)2,000 units
• B)5,000 units
• C)3,800 units
• D)1,800 units

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Definitions:

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any given jurisdiction, often serving as the foundation for financial reporting.

Financial Flexibility

The ability of an organization to maneuver its financial resources to respond to unforeseen opportunities or challenges.

Return on Investment

Return on Investment (ROI) measures the gain or loss generated from an investment relative to its cost, indicating the efficiency of the investment.

Cash Flows

The total amount of money being transferred in and out of a business, especially affecting its liquidity.