Use the Following to Answer Questions

question 85

Multiple Choice

Use the following to answer questions:
Figure: Demand and Supply
-(Figure: Demand and Supply) Refer to the figure. At the equilibrium quantity, total surplus is:

• A) $960.
• B) $480.
• C) $320.
• D) $240

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Definitions:

Conversion Equivalent Units

A metric used in cost accounting to quantify the amount of work done on partially finished goods, measured in full unit equivalents.

First-In, First-Out

A method of valuing inventory in which the first items bought or manufactured are the first ones to be sold or utilized.

Conversion Costs

The combined costs of direct labor and manufacturing overhead required to convert raw materials into finished products.

Equivalent Units

A term used in cost accounting to indicate a standard amount of work done on an incomplete unit, making it comparable to complete units.