If the Units in the Beginning Work-In-Process Inventory Are Greater

question 140

Multiple Choice

If the units in the beginning Work-in-Process Inventory are greater than the units in the ending Work-in-Process Inventory,then the units transferred out are:

• A) more than the units started during the period.
• B) equal to the equivalent units of production.
• C) less than the units started during the period.
• D) equal to the actual work done during the perioD.
• BWIP + TI - TO = EWIP;BWIP - EWIP = TO - TI.If BWIP > EWIP then TO > TI

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Definitions:

Debt/Equity Ratio

An indicator for evaluating a company's use of financial leverage, obtained by dividing the firm's overall liabilities by the equity of its shareholders.

Net Income

The earnings of a company after all expenses, including taxes and operational costs, have been deducted from revenues, reflecting the company's profit.

Accounts Receivable

The amount that debtors are required to pay to a company for the goods or services they have received but have not yet compensated for.