Garrison Company Adds Direct Materials at the Beginning of the Process

question 213

Multiple Choice

Garrison Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The data listed below represents data in the Shaping Department: What are the equivalent units for direct materials?

• A)61,000
• B)53,000
• C)57,000
• D)50,500

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Definitions:

Gallons

A unit of measurement for volume primarily used in the United States, equal to 3.785 liters.

Gas

A state of matter consisting of particles that are not bound together, allowing it to expand to fill the shape of its container, commonly used as a fuel or energy source.

Special Bonus

An additional payment or reward given to an employee or group, often as recognition for exceptional work or achievement.

Fund

A pool of money set aside for a specific purpose or invested in a variety of financial instruments to generate returns for its investors.