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question 38

Multiple Choice

[The following information applies to the questions displayed below.]
Aves Treats,Inc.produces birdseeds.All direct materials used in the production process are added at the beginning of the manufacturing process.Labor and overhead are added evenly thereafter,as each unit is mixed and packaged.Aves Treats uses process costing and had the following unit production information available for the months of June and July:
The units remaining in work in process at the end of June were 30% complete.During the month of July,all of the beginning work in process units was completed and the units remaining in work in process at the end of the month were 60% complete.
-For the month of July,the number of equivalent units of direct materials produced was:

• A)700.
• B)800.
• C)900.
• D)950.

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Definitions:

Financial Ratios

Quantitative metrics derived from financial statement analysis used by investors and analysts to evaluate a company's financial health and performance.

Working Capital

The discrepancy between an entity's immediate assets and its short-term obligations, reflecting its liquidity and effectiveness in day-to-day operations.

Cash Flows

The overall volume of cash transactions into and from a corporation, significantly affecting its liquidity status.

Financial Statement Analysis

The process of evaluating and reviewing a company's financial statements to make better economic decisions.