In a Process-Costing System,the Calculation of Equivalent Units Is Used

question 238

Multiple Choice

In a process-costing system,the calculation of equivalent units is used for calculating:

• A)the dollar amount of the cost of goods sold for the accounting period.
• B)the dollar amount of ending inventory.
• C)the dollar cost of a particular job.
• D)Both A and B are correct.

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Definitions:

Gross Profit

Revenue minus the cost of goods sold (COGS), representing the profit a company makes after deducting the costs associated with making and selling its products.

Discount Period

A set time period during which a discount is available, or the period between the issuance of a bill and its payment due date where a discount may be taken for early payment.

Credit Memo

A document issued by a seller to a buyer, reducing the amount the buyer owes to the seller under the terms of an existing invoice.

Sold Merchandise

Refers to the goods or products that a company has sold to its customers as part of its ordinary business operations.