In the Computation of the Manufacturing Cost Per Equivalent Unit

question 22

Multiple Choice

In the computation of the manufacturing cost per equivalent unit, the weighted-average method of process costing considers:

• A) current costs only.
• B) current costs plus cost of beginning Work-in-Process Inventory.
• C) current costs plus cost of ending Work-in-Process Inventory.
• D) current costs less cost of beginning Work-in-Process Inventory.

---

Definitions:

Parity Price

Parity price is a price level that ensures farmers receive a relative value for their commodities comparable to the purchasing power of a certain base period.

Price Elasticity

The measure of demand fluctuation as a response to changing prices of a good.

Agricultural Products

Products stemming from the practice of agriculture, such as crops and animal products, which can be used for food, fuel, and raw materials.

Spending

The act of using money to purchase goods or services, contributing to economic activity.