When a Department Has Work in Process at the End

question 62

Multiple Choice

When a department has work in process at the end of the period,we need to determine the percentage of completion for the work in process.Based on that percentage we calculate

• A)Actual units of production
• B)Particular units of production
• C)Equivalent units of production
• D)Half- units of production

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Definitions:

Specific Customer

A particular or individual client to whom products or services are sold or provided.

Allowance Method

An accounting technique that estimates and deducts accounts receivable that may not be collectible, to more accurately represent a company's financial position.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal, used in valuing inventory to reflect the net amount that can be realized.

Allowance for Doubtful Accounts

An estimation of future uncollectible amounts from customers, reducing the accounts receivable balance to a more realistic figure.