Gregory, Which Uses a Process-Costing System, Adds All Material at the Beginning

question 37

Multiple Choice

Gregory, which uses a process-costing system, adds all material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The information that follows relates to the period just ended:
Units started and completed: 75,000
Units in ending work-in-process inventory: 15,000, 60% complete
Which of the following choices correctly expresses the total equivalent units of production with respect to material and conversion cost? $\begin{array}{lll}&\text { Material }&\text {Conversion }\\\text { A. } & 75,000 & 75,000 \\\text { B. } & 84,000 & 84,000 \\\text { C. } & 90,000 & 81,000 \\\text { D. } & 90,000 & 84,000 \\\text { E. } & 90,000 & 90,000\end{array}$

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D
• E) Choice E

Understand the concept of a firm's production function and how it relates to input factors.

Learn how to calculate supply functions based on factor prices and production functions.

Comprehend the relationship between production functions, cost functions, and profit maximization.

Grasp the concept of marginal cost and its importance in production and pricing decisions.

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Definitions:

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A large and economically important family of plants, also known as the grass family, which includes species like wheat, corn, and rice.