Equivalent Units of Production Are Calculated Because

question 35

Multiple Choice

Equivalent units of production are calculated because

• A) some units in ending work-in-process are incomplete at the end of the period.
• B) sometimes departments switch from job order costing to process costing, and must recalculate units.
• C) the number of equivalent units must always equal the total number of physical units
• D) the equivalent cost per unit is used to determine the manufacturing overhead rate.

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Definitions:

Transfer

The act of moving assets, securities, or other valuables from one party to another.

Lockbox System

A service provided by banks to companies for the collection of payments from customers, involving the use of a special post office box to speed up the deposit process.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, used to raise funds and manage the money supply.