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

question 112

Multiple Choice

An error was made by Marrow 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?

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

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Definitions:

Hemoglobin

A protein in red blood cells responsible for transporting oxygen throughout the body.

Hypoxia

A condition in which the body or a region of the body is deprived of adequate oxygen supply at the tissue level.

Trauma to C4

Injury or damage to the fourth cervical vertebra in the spine, which can potentially lead to significant neurological impairment or paralysis.

Tidal Volumes

The volume of air moved into or out of the lungs during a normal breath, critical in respiratory therapy and mechanical ventilation management.