Figure 6-15 the Davidson Company Uses a Weighted Average Process

question 163

Multiple Choice

Figure 6-15 The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100%.
Refer to Figure 6-15. What are the equivalent units for materials?

• A) 133,000
• B) 100,000
• C) 165,000
• D) 125,000
• E) none of the above

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Definitions:

Automated Equipment

Machinery and tools that operate with minimal human intervention, often using technology to perform tasks.

Intangible Benefits

Non-monetary advantages of an action or investment, such as improved employee satisfaction or brand loyalty, which are difficult to quantify.

Discount Rate

The interest rate used to discount future cash flows to their present value, reflecting the opportunity cost of capital.

Net Cash Inflows

The difference between all cash inflows and outflows within a specific period, reflecting the company’s cash position.