The Taylor Company Uses a Process Costing System -
Equivalent Units for Direct Materials Are
A) 180,000

question 86

Multiple Choice

The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the average costing method. The following data are available for one of its accounting periods: $\begin{array}{|l|l|l|}\hline & \text { Units } & \\\hline \text { Beginning work in process } & 26,000 & \text { (70 percent complete for conversion costs) } \\\hline \text { Units started } & 180,000 & \\\hline \text { Units transferred out } & 191,000 & \\\hline \text { Ending work in process } & 15,000 & \text { (60 percent complete for conversion costs) } \\\hline & &\end{array}$
-
Equivalent units for direct materials are

• A) 180,000.
• B) 206,000.
• C) 176,000.
• D) 191,000.

---

Definitions:

Variable Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed.

Reinforcement

Reinforcement is a principle in behaviorism that increases the likelihood of a behavior being repeated, which can be either positive (by adding a pleasant stimulus) or negative (by removing an unpleasant stimulus).

Amount of Time

The duration or span during which an event occurs or an action takes place.

Varies

To differ in size, amount, degree, or nature from something else in a group, set, or series.