A Process Costing System Was Used for a Department That $\text { Equivalent Units for Weighted Aver age cmnpared to FIFO }$

question 121

Multiple Choice

A process costing system was used for a department that began operations in January 2020. Approximately the same number of physical units, at the same degree of completion, were in work-in-process at the end of both January and February. Monthly conversion costs are allocated between ending work-in-process and units completed. Compared to the FIFO method, would the weighted-average method use the same or a greater number of equivalent units to calculate the monthly allocations? (CPA adapted)
$\text { Equivalent Units for Weighted Aver age cmnpared to FIFO }$

$\begin{array}{l}& \text { January } & \text { February } \\\end{array}$
A. $\begin{array}{l} & \text { Same } &&\text { Same }\\\end{array}$
B. $\begin{array}{l} & \text { Greater } & \text { Same } \\\end{array}$
C. $\begin{array}{l} & \text { Greater } & \text { Greater } \\\end{array}$
D. $\begin{array}{l}& \text { Same } && \text { Greater } \\\end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

Understand and calculate Social Security taxes based on different income levels.

Differentiate between marginal and average tax rates and how to calculate them.

Identify the proportion of federal receipts coming from individual income taxes.

Recognize the distribution of federal government spending, including defense and entitlement programs.

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Definitions:

Contract Comes into Existence

The point at which an agreement between two or more parties is legally enforceable, usually triggered by an offer, acceptance, and adequate consideration.

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, rather than providing monetary compensation for failing to do so.

Contract Remedy

The legal means available to a party to enforce, redress, or protect their rights under a contract.

Rescission

The legal act of voiding a contract and returning the parties involved to their original positions, as if the contract had never been executed.