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:

Net Income

The final amount a company keeps as profit after deducting all costs and taxes from its gross revenue.

Marginal Tax Rate

The rate of tax imposed on your income, corresponding to each applicable tax bracket.

Average Tax Rate

Total taxes paid divided by total taxable income.

Net Working Capital

The difference between a company’s current assets and current liabilities, indicating the liquidity of the business.