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

question 50

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 average costing method.The following data are available for one of its accounting periods: $\begin{array}{lr}&\text { Units }\\\text { Beginning work in process } & 26,000& \text { (70 percent complete for } \\&&\text { conversion costs) } \\\text { Units started } & 180,000 \\\text { Units transferred out } & 191,000 \\\text { Ending work in process } & 15,000 &\text { (60 percent complete for } \\&& \text { conversion costs) }\end{array}$

Equivalent units for direct materials are

• A) 180,000.
• B) 206,000.
• C) 176,000.
• D) 191,000.

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Definitions:

Ganglion Cells

Neurons located near the inner surface of the retina of the eye, involved in the initial processing of visual information.

Optic Nerve

The nerve responsible for conducting visual data from the retina to the brain.

Visual Receptors

Cells located in the retina that are sensitive to light and play a key role in vision by converting light energy into neural signals.

Retina

A layer at the back of the eyeball containing cells that are sensitive to light and trigger nerve impulses that pass via the optic nerve to the brain, where a visual image is formed.