Blue Company Has Beginning and Ending Work-In-Process Inventories That Are

question 14

Multiple Choice

Blue Company has beginning and ending Work-in-Process Inventories that are 45% and 10% complete,respectively.Materials are added at the beginning of the process.If first-in,first-out (FIFO) process costing is used,the total equivalent units for materials will equal the number of units:

• A)transferred out during the period.
• B)started and completed during the period.
• C)started into the process during the period.
• D)started into the process plus the units in the ending inventory.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations using its current assets.