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

question 85

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 number of units completed is

• A) 45,000
• B) 47,000
• C) 50,000
• D) 57,000

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Definitions:

Uniform Commercial Code

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing commercial transactions in the United States, including sales, leases, negotiable instruments, and secured transactions.

Common Law

A legal system characterized by court-made precedents and inherited from England, forming the basis of jurisprudence in the United States and other countries formerly part of the British Empire.

Contracts

Legally enforceable agreements between two or more parties that create mutual obligations.

Invitation to Negotiate

A communication or action that suggests willingness for discussions to explore potential agreements or terms, but not constituting an official offer.