The Following Production Data Were Taken from the Records of the Finishing

question 82

Multiple Choice

The following production data were taken from the records of the finishing department for June: ​
​
Determine the number of equivalent units of production in the June 30,finishing department inventory,assuming that the first-in,first-out method is used to cost inventories.The completion percentage of 25% applies to both direct materials and conversion costs.

• A) 575 units
• B) 200 units
• C) 1,000 units
• D) 300 units

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Definitions:

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks, used in finance to price risky securities.

William Sharpe

An economist who created the Sharpe Ratio, a measure to calculate risk-adjusted return.

SML (Security Market Line)

A line in the Capital Asset Pricing Model that shows the relationship between the expected return of a security and its risk.

Risk Averse

A tendency to prefer certainty over uncertain outcomes to minimize exposure to financial loss.