In a Particular Department,5,000 Units Were Started and All but 600

question 105

Multiple Choice

In a particular department,5,000 units were started and all but 600 were completed at the end of the period.These 600 were 70% complete for materials and 45% for conversion costs.Costs added were $52,300 for materials and $53,500 for conversion costs.What is the total number of equivalent units for direct materials?

• A)5,420
• B)4,670
• C)4,820
• D)4,400

---

Definitions:

Static Budget

A budget that is set for a specific level of activity and does not change or adjust with the actual level of activity achieved.

Fixed Manufacturing Overhead

The set costs involved in producing a product that do not change with the level of production, such as rent, salaries, and utilities.

Master Budget

A comprehensive financial plan comprising various individual budgets covering all facets of an organization's operations.

Machine Hours

A measure of the amount of time a machine is operated, used in manufacturing to allocate costs based on machine usage.