The Taylor Company Uses a Process Costing System Equivalent Units for Direct Materials Are
A) 180,000

question 87

Multiple Choice

The Taylor Company uses a process costing system.Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process.The company uses the FIFO costing method.The following data are available for one of its accounting periods: $\begin{array} { l l } &\text { Units }\\\text { Beginning work in process }&\text { 26,000 (70 percent complete for conversion }\\& \text { costs) } \\ \text { Units started } & 180,000 \\ \text { Units transferred out } & 191,000 \\ \text { Ending work in process } & 15,000 \text { (60 percent complete far conversion } \\ & \text { costs) } \end{array}$ Equivalent units for direct materials are

• A) 180,000.
• B) 202,000.
• C) 176,000.
• D) 191,000.

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Definitions:

Financing Cash Flows

Cash flows associated with the raising of capital and repayment of borrowings, including issuing and repurchasing shares, and payment of dividends.

Subsidiaries Acquired

Refers to companies that have been bought and are now controlled by a parent company, becoming part of a larger corporate family.

Reconstruction Of Ledger

The process of reorganizing a company's ledger to correct errors or after a significant transaction.