If Beginning Inventory in Work in Process Is Zero and 2,000

question 7

Multiple Choice

If beginning inventory in Work in Process is zero and 2,000 units are started during the period,assuming that 300 units remain in ending inventory,how many equivalent units were completed and transferred out?

• A)2,000 units.
• B)285 units.
• C)300 units.
• D)1,700 units.

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Definitions:

Depreciation

The gradual decrease in the economic value of the capital stock of a firm, country, or other entity, either through physical wear and tear or obsolescence.

Control

In the context of management or economics, it refers to the ability to direct the behavior of a system or the decisions within an organization to achieve desired outcomes.

Annual Interest Rate

The annual interest rate is the percentage of interest that is charged or earned on an investment or loan over a one-year period.

Gross Investment

The total amount spent on purchasing or building new fixed assets and on replacing old assets, without deducting for depreciation.