The Assembly Department of Smart Computers Had 500 Units of Beginning

question 1

Multiple Choice

The Assembly Department of Smart Computers had 500 units of beginning inventory in the month of September and 2,000 units were transferred to it from the Production Department. The Assembly Department completed 1,000 units during the month and transferred them to the Packaging Department. Calculate the total number of units to account for by the Assembly Department.

• A)1,500 units
• B)2,000 units
• C)500 units
• D)2,500 units

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Definitions:

Structured Entity

A legal entity with a specific purpose, restricted operations, and a limited scope of activities, often created for securitization, investment, or to hold assets.

Receivables

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

Cost Method

An accounting approach used for recording investments, where the investment is recorded at its acquisition cost without any subsequent change in its value unless there is an impairment or disposal.

Equity Method

An accounting method used to record investments in which the investor has significant influence but not full control.