An Error Was Made by ROC Company in Computing the Percentage-Of-Completion

question 84

Multiple Choice

An error was made by ROC Company in computing the percentage-of-completion of the current year's ending Work-in-Process Inventory.The error resulted in the assignment of a lower percentage of completion to each component of the inventory than actually was the case.There was no beginning Work-in-Process Inventory.What is the effect of this error on (1) cost assigned to cost of goods completed for the period and (2) the computation of costs per equivalent unit? 1 2

• A)Understated Understated
• B)Understated Overstated
• C)Overstated Understated
• D)Overstated Overstated

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Definitions:

Polymerization

A chemical process that combines small molecules (monomers) into a larger compound (polymer) with repeating structural units.

Organic Monomers

Small organic molecules that can chemically bind to other molecules to form polymers, essential in the structures of life.

Clay

A natural, earthy material known for its plasticity when wet, used in ceramics and as a key component of soil.

Vascular Plants

Plants that have specialized structures for the transport of water and nutrients, including xylem and phloem.