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:

Heavy Oil Components

The high-molecular-weight components found in crude oil, characterized by their high density and viscosity.

Marine Birds

Birds that primarily depend on the ocean for their feeding and breeding, often adapted to life at sea, such as seagulls, albatrosses, and penguins.

Clams

Shelled marine or freshwater mollusks found on sandy ocean bottoms.

Oil Spills

The release of liquid petroleum hydrocarbons into the environment, especially marine areas, due to human activity, leading to environmental pollution.