Door Specialists Make a Product That Passes Through Two Processes $\begin{array}{ll}\text { Units, beginning work in process } & 10,000 \\\text { Units, ending work in process } & 13,000\end{array}$

question 88

Multiple Choice

Door Specialists make a product that passes through two processes. During March, the first department transferred 50,000 units to the second department. The cost of the units transferred was $75,000. Materials are added uniformly in the second process. The following information was provided about the second department's operations during March:
$\begin{array}{ll}\text { Units, beginning work in process } & 10,000 \\\text { Units, ending work in process } & 13,000\end{array}$
-Refer to the Figure.How many units were started and completed in Door Specialists second department during March?

• A)37,000
• B)50,000
• C)60,000
• D)61,000

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Definitions:

MC

Marginal cost; the cost incurred by producing one additional unit of a product.

External Cost

Costs that are not borne by the parties involved in an economic transaction but are suffered by other members of society.

Free-Rider Problem

A situation where individuals consume more than their fair share of a public resource, or shoulder less than a fair share of the costs of its production, without contributing to the resource's provision.

Air Pollution

The presence of harmful or excessive quantities of substances, including gases, particulates, and biological molecules, in the Earth's atmosphere, causing diseases, allergies, or environmental damage.