Assume There Were 6,000 Units in Beginning Work in Process

question 10

Multiple Choice

Assume there were 6,000 units in beginning work in process, 60% complete. 20,000 units were completed during the month. Ending work in process is 40% complete, which is equivalent to 3,200 units for conversion costs. Materials are added at the beginning of the process. The standard cost method is used.
Assume the total conversion costs for the month are $78,400. What amount of conversion costs are attached to units in ending work in process inventory?

• A) $8.960
• B) $12,800
• C) $10,814
• D) None of the above

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Definitions:

Escalation Of Commitment

The tendency to continue to support a failing course of action.

Risk Averse

This term describes individuals or organizations that prefer to minimize risks, often opting for safer, more predictable outcomes.

Z Problem-solving Model

A methodological approach to problem-solving that involves examining issues from multiple perspectives to find sustainable solutions.

Nonpreferences

The absence of a preference or inclination towards one option over another, often resulting in indecision or a neutral stance.