Beginning Work in Process Consists of 7,000 Units, 55% Complete

question 70

Multiple Choice

Beginning work in process consists of 7,000 units, 55% complete. 50,000 units were started and ending work in process is 5,000 units, 25% complete. Normal spoilage is equal to 10% of the units inspected. The inspection point occurs at the 20% point and 7,000 units were rejected. Direct materials are added at the 50% point, direct labor at 30% and overhead is applied uniformly. The costs per equivalent unit are: direct material $1.00; direct labor $1.50; overhead $2.00. The equivalent units of labor are

• A) 48,000
• B) 45,000
• C) 46,000
• D) 46,500

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Definitions:

Bankruptcy Estate

All legal or equitable interests of the debtor in property at the time of the bankruptcy filing, governed by bankruptcy law.

Automatic Stay

After bankruptcy has been filed, a moratorium during which creditors cannot bring or continue action against the debtor or his or her property.

Discharging Debts

The process of eliminating debts through various means, such as bankruptcy or fulfillment of payment terms.

Automatic Stay

A provision in bankruptcy law that halts actions by creditors to collect debts from a debtor who has declared bankruptcy, providing temporary relief.