A Department Had 600 Units Which Were 40% Complete in Beginning

question 162

Multiple Choice

A department had 600 units which were 40% complete in beginning Goods in Process Inventory. During the current period, 7,000 units were transferred out. Ending Goods in Process Inventory was 800 units which were 40% complete. Using the Weighted Average method, what are the equivalent units produced if all direct material and direct labor are added uniformly throughout the process?

• A) 7,080
• B) 6,960
• C) 7,320
• D) 7,680
• E) 7,800

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Definitions:

Cube

A three-dimensional shape with six square faces, all of identical size, and eight vertices.

Competitive Firm

A company that operates in a market with many sellers and buyers, where no single entity can influence the market price.

Warehouse Space

A designated area used for storing goods in order to ensure their preservation, organization, or security before distribution.

Perfectly Competitive Industry

An industry structure where many firms produce identical products, entry and exit are easy, and no single firm can influence the market price.