The May Corporation Uses a Process System

question 150

Multiple Choice

The May Corporation uses a process system. During the current period, 2700 units were started and 1600 units were completed and transferred out. Ending units were 60% complete for materials and 45% complete for conversion costs. Direct materials costs added were $32,100 and conversion costs added were $35,800. There was no beginning WIP Inventory and conversion costs are added evenly throughout the process. At the end of the period, what are the total equivalent units for conversion costs?

• A)2260
• B)1100
• C)1600
• D)2095

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Definitions:

Reasonable Level

A term often used in finance and economics to describe an equilibrium or average measure that is considered acceptable under given conditions.

Capital Budget

The planning process used by a company to determine whether its long-term investments or projects are worth pursuing.

Dividend Per Share

The sum of declared dividends for every share of common stock issued, divided by the number of outstanding shares.

Outstanding Shares

The total shares of stock that are currently owned by shareholders, including restricted shares owned by company insiders.