A Company's Beginning Work in Process Inventory Consisted of 20,000

question 115

Multiple Choice

A company's beginning Work in Process inventory consisted of 20,000 units that were 20% complete with respect to direct labor.These beginning units were completed and another 90,000 units were started during the current period.Of those started,60,000 were finished and the remaining 30,000 were 40% complete at the end of the period.Using the weighted-average method,the equivalent units of production with regard to direct labor were:

• A)88,000.
• B)74,000.
• C)76,000.
• D)92,000.
• E)96,000.

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Definitions:

Labour Cost Savings

Reductions achieved in the expenses related to employing labor, often through efficiencies, negotiations, or changes in work practices, without compromising productivity.

Short-term Incentives

Compensation methods designed to provide immediate rewards for performance, typically in the form of bonuses, to motivate employees over a short period.

Stock Bonus Plan

A compensation program that provides employees with shares of the company's stock as a part of their remuneration.

Employee Stock Option Plans

Programs that offer employees the option to purchase company shares at a discounted price, aiming to align their interests with those of the company.