If There Was No Beginning Work in Process and No

question 2

Multiple Choice

If there was no beginning work in process and no ending work in process under the weighted-average process costing method, the number of equivalent units for direct materials, if direct materials were added at the start of the process, would be:

• A)equal to the units started or transferred in
• B)equal to the units completed
• C)less than the units completed
• D)Both A and B are correct.

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Definitions:

Gross Profit

The financial metric that represents the difference between sales revenue and the cost of goods sold, excluding other expenses and overhead.

Merchandise Sold

Goods that have been sold by a company, generating revenue; part of the sales process in a retail or wholesale environment.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of raw materials and labor.

Credit Terms

Agreed upon conditions under which a buyer can pay at a later time for goods or services received, typically specifying the time period and any discount for early payment.