Beginning Work in Process Consists of 7,000 Units, 55% Complete

question 66

Multiple Choice

Beginning work in process consists of 7,000 units, 55% complete. 50,000 units were started and ending work in process is 5,000 units, 25% complete. Normal spoilage is equal to 10% of the units inspected. The inspection point occurs at the 20% point and 7,000 units were rejected. Direct materials are added at the 50% point, direct labour at 30% and overhead is applied uniformly. The costs per equivalent unit are: direct material $1.00; direct labour $1.50; overhead $2.00.
The equivalent units of labour are:

• A) 48,000
• B) 45,000
• C) 46,000
• D) 46,500

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Definitions:

Mission Statement

A formal summary of the aims and values of a company, organization, or individual.

Special Identity

A unique or distinct character or personality that sets an individual, group, or entity apart from others.

Path of Development

The course or trajectory that an individual, organization, or project follows in order to achieve growth, progress, or advancement.

Demographic Challenge

Issues or problems faced by organizations or societies due to changes in population structure, such as aging populations or changing birth rates.