Use the Information Below to Answer the Following Questions

question 259

Multiple Choice

Use the information below to answer the following questions:
The Adams Company uses a process costing system. During the current period, 1,600 units were started and 1,200 units were completed and transferred out. Ending units were 70% complete for materials and 35% complete for conversion costs. Direct materials costs added were $32,500 and conversion costs added were $31,400. There was no beginning WIP inventory and conversion costs are added evenly throughout the process.
-At the end of the period, what are the total equivalent units for direct materials for the Adams Company?

• A) 1,200
• B) 1,600
• C) 1,340
• D) 1,480

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Definitions:

Management Reports

Analytical reports designed for business managers to assist in making strategic decisions.

Decision Making

The cognitive process resulting in the selection of a course of action among several possible alternatives.

Long-Term Assets

Long-term assets, also known as non-current assets, are resources a company expects to use or hold for more than one year, such as property, plant, and equipment.

Acquisition

The process of obtaining control of another company by purchasing its stock or assets.