A Firm Had 600 Units in Its Work in Process

question 27

Multiple Choice

A firm had 600 units in its work in process inventory at the beginning of a month. Of these units, 30 percent were complete with respect to labor, materials, and overhead. The firm transferred 5,000 units to the finished goods inventory during the month. It had 500 units of which 40 percent were complete and still in process at the end of the month. Equivalent production for the month was

• A) 5,680 units.
• B) 5,380 units.
• C) 5,200 units.
• D) 5,180 units. 5000 + (500 x 40%).

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Definitions:

Unconscionable

Describes an agreement so unfair or unjust that it shocks the conscience, often deemed unenforceable by courts.

Resale of Goods

The act of selling an item that has already been purchased, typically referring to the sale of goods by businesses to consumers.

Broken Contract

A situation where one or more parties fail to fulfill the terms and conditions outlined in a legally binding agreement.

Specific Performance

A judicial order compelling a party to execute their duties as specified in a contract instead of compensating with damages for contract violation.