Department R Had 5,000 Units in Work in Process That

question 52

Multiple Choice

Department R had 5,000 units in work in process that were 75% completed as to labor and overhead at the beginning of the period, 30,000 units of direct materials were added during the period, 32,000 units were completed during the period, and 3,000 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was:

• A) 32,450
• B) 29,450
• C) 31,950
• D) 26,000

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Definitions:

Bonds Payable

A liability companies incur when issuing debt securities to investors, repayable at a future date.

Fair Value

An estimation of the price at which an asset or liability could be traded in an orderly transaction between knowledgeable, willing parties.

Unrealized Profits

Profits that have been generated on paper through an investment's increased value but have not yet been realized through a sale.

Intercompany Sales

The internal sale of products or services between related entities within the same corporate structure, aiming to streamline operations and optimize resources.