The Following Data Are Available for a Company's Manufacturing Activities

question 47

Multiple Choice

The following data are available for a company's manufacturing activities:

Assume the company uses the Weighted Average inventory method. If materials are added when the production process begins and direct labor is applied uniformly throughout the process, what are the equivalent units for direct materials and for direct labor, respectively?

• A) 21,000; 23,000
• B) 26,000; 19,250
• C) 21,000; 19,250
• D) 26,000; 23,000
• E) 19,250; 19,250

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Definitions:

Finance Charge

A fee representing the cost of credit or the cost of borrowing, typically detailed in the terms of a loan or credit agreement.

Accounts Receivable

Money owed to a business by its customers for products or services delivered or used but not yet paid for.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that is expected to be uncollectible.

Merchandise Return

The process of returning purchased goods to the seller, typically due to defects, dissatisfaction, or other reasons.