Assuming That There Was No Beginning Work in Process Inventory

question 28

Multiple Choice

Assuming that there was no beginning work in process inventory and the ending work in process inventory is 50 per cent complete as to conversion costs,the number of equivalent units as to conversion costs would be:

• A) The same as the units completed.
• B) The same as the units placed in process.
• C) Less than the units completed.
• D) Less than the units placed in process.

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Definitions:

Production Improvements

Enhancements made to the production process to increase efficiency, reduce costs, or improve product quality.

Days' Payable Outstanding

A financial ratio that calculates the average time it takes for a company to pay its suppliers.

Accounts Payable

Immediate financial obligations a business has, indicating money owed to vendors or lenders for products and services that have been delivered but remain unpaid.

Conversion Costs

The combined costs of direct labor and manufacturing overheads incurred when converting raw materials into finished products.