Materials are added at the start of the process in McKay Company's blending department, the first stage of the production cycle. The following information is available for the month of July: Under McKay's cost accounting system, the costs incurred on the lost units are absorbed by the remaining good units. Using the average cost method, what are the equivalent units for the materials unit cost calculation?
A)210,000
B)195,000
C)250,000
D)235,000

Question

Materials are added at the start of the process in McKay Company's blending department, the first stage of the production cycle. The following information is available for the month of July:  Under McKay's cost accounting system, the costs incurred on the lost units are absorbed by the remaining good units. Using the average cost method, what are the equivalent units for the materials unit cost calculation?
A)210,000 
B)195,000 
C)250,000 
D)235,000

Quizplus · Accepted Answer

11eb16ac_e00e_6e07_984d_790cbdbe2797_TB6154_00

Materials Are Added at the Start of the Process in McKay