Cloud Nine International Uses a Process Costing System

question 58

Multiple Choice

Cloud Nine International 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:
-Equivalent units for direct materials of Cloud Nine International are

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

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Definitions:

Postponement

A strategy in supply chain management where the finalization of the product or shipment is delayed until the last possible moment to better match demand.

Large Fraction

A significant portion or part of a whole.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a certain period of time.

Multiple Products

Refers to a range of different items or SKUs that a company produces or sells.