If the Cost of Materials Increased from January to February

question 21

Multiple Choice

If the cost of materials increased from January to February and there is beginning inventory for each month, which of the following statements would be true? (Assume all other factors are held constant.)

• A)Only the weighted average method would result in an increase in the unit cost for February.
• B)Only the FIFO method would result in an increase in the unit cost for February.
• C)Both the weighted average method and the FIFO method would result in an increase in the unit cost for February; however, the weighted average method would result in a greater unit cost for units in February than the FIFO method.
• D)Both the weighted average method and the FIFO method would result in an increase in the unit cost for February; however, the FIFO method would result in a greater unit cost for units in February than the weighted average method.

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Definitions:

Capsid

Protein coat surrounding the nucleic acid of a virus.

Envelope

A flat, usually rectangular or square paper container used for sending letters or documents, or the outer covering of a structure.

Pilus

A hair-like appendage found on the surface of many bacteria, involved in adhesion to surfaces and in bacterial conjugation.

Endotoxins

Toxic substances bound to the bacterial cell wall and released when the bacteria disintegrates.