Department M Had 2,000 Units 40% Completed in Process at the Beginning

question 180

Multiple Choice

Department M had 2,000 units 40% completed in process at the beginning of June, 12,000 units completed during June, and 1,200 units 25% completed at the end of June. What was the number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories?

• A) 11,500 units
• B) 11,200 units
• C) 15,200 units
• D) 10,000 units

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Definitions:

Purely Competitive Industry

Refers to a market structure where many firms sell identical products, entry and exit from the market are easy, and no single buyer or seller can influence the market price.

Demand Curve

This depicts how consumer demand for a product changes as the price of that product changes, illustrating the inverse relationship between price and quantity demanded.

Perfectly Elastic

Describes a situation in which quantity demanded or supplied changes infinitely in response to any change in price, visualized as a horizontal line on a demand or supply graph.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as the quantity of output produced changes.