At the End of January, Monroe Industries Had Completed 65,000

question 3

Essay

At the end of January, Monroe Industries had completed 65,000 units and left 8,000 units in Work In process, 60% complete with respect to materials and 80% complete with respect to conversion. How many equivalent units will be used to determine the cost per equivalent unit for materials?
A) 66,600
B) 68,200
C) 69,800
D) 71,400

• A) 66,600
• B) 68,200
• C) 69,800
• D) 71,400

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Definitions:

Acquisition Of Inventory

The process by which a company purchases goods and materials for production or resale, often affecting cash flow and operational strategy.

Sale Of Inventory

The process of selling a company's goods and products that are part of its stock to generate revenue.

Payment To Supplier

A financial transaction involving the transfer of funds to a supplier in exchange for goods or services.

Operating Cycle

The duration of time from the acquisition of inventory to the collection of cash from receivables, reflecting the efficiency of a business's operations.