At the Beginning of the Month,the Painting Department of Skye

question 90

Multiple Choice

At the beginning of the month,the Painting Department of Skye Manufacturing had 20,000 units in inventory,70% complete as to materials,and 20% complete as to conversion.During the month the department started 115,000 units and transferred 120,000 units to the next manufacturing department.At the end of the month,the department had 15,000 units in inventory,40% complete as to materials and 10% complete as to conversion.If Skye Manufacturing uses the weighted average method of process costing,compute the equivalent units for materials and conversion respectively for the Painting Department.

• A)126,000 materials; 121,500 conversion.
• B)112,000 materials; 117,500 conversion.
• C)126,000 materials; 117,500 conversion.
• D)121,500 materials; 126,000 conversion.
• E)112,000 materials; 121,500 conversion.

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Definitions:

Shares of Stock

Units of ownership in a corporation, representing a claim on part of the corporation's assets and earnings.

Amalgamation

The process of combining two or more companies into a single entity, often to achieve operational efficiencies or strategic objectives.

Merger

The merging of two or more corporations into a single entity, where one company is entirely taken over by another.

Acquisition

The process by which one company purchases most or all of another company's shares to take control.