A Department Had 12,500 Units Which Were 20% Complete in Beginning

question 106

Multiple Choice

A department had 12,500 units which were 20% complete in beginning Goods in Process Inventory. During the current period 60,000 units were transferred in. Ending Goods in Process Inventory was 15,000 units which were 70% complete. Assume this company uses the FIFO method of process costing and direct material is added uniformly throughout the process. What are the equivalent units produced with respect to direct material?

• A) 65,500.
• B) 57,500.
• C) 37,000.
• D) 47,500.
• E) 68,000.

---

Definitions:

Convergent Validity

When a scale correlates with other scales measuring the same construct.

Face Validity

When scale items appear, at face value, to measure what they are supposed to measure.

Convergent Validity

The degree to which two measures that theoretically should be related are actually related.

Discriminant Validity

The degree to which a concept or measurement is not associated with other concepts or measurements it's supposed to be unrelated to.