Answer the Following Questions Using the Information Below

question 85

Multiple Choice

Answer the following questions using the information below:
The Townsend Tractor Company manufactures small garden tractors on a highly automated assembly line.Its' costing system uses two cost categories, direct materials and conversion costs.Each tractor must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Townsend Tractor uses weighted-average costing.
-What are the Townsend Company equivalent units for direct materials and conversion costs, respectively, for April?

• A)1,350 units; 1,350 units
• B)1,850 units; 1,690 units
• C)1,600 units; 1,550 units
• D)250 units; 200 units
• E)1,600 units; 1,350 units

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Definitions:

Importing Country

A country that buys goods and services from abroad for domestic consumption or use.

Quota Rights

Entitlements allocated by governments or international bodies that allow entities to import or export a specified quantity of goods.

Tariff Revenue

Income that a government earns from imposing taxes on imported goods.

United States

A country located in North America, known for its significant economic, political, and cultural influence worldwide.