Figure 6-10 -Refer to Figure 6-10.A Price Ceiling Set at

question 57

Multiple Choice

Figure 6-10
-Refer to Figure 6-10.A price ceiling set at

• A)$6 will be binding and will result in a shortage of 10 units.
• B)$6 will be binding and will result in a shortage of 6 units.
• C)$16 will be binding and will result in a shortage of 10 units.
• D)$16 will be binding and will result in a shortage of 4 units.

---

Definitions:

Conversion Costs

Refers to the combination of direct labor and manufacturing overhead costs incurred to convert raw materials into finished products.

Weighted-Average Method

An inventory costing method that assigns a cost to inventory on the basis of the average cost of all similar items in the inventory.

Molding Department

A specialized division within a manufacturing facility where the shaping and forming of products through molding processes take place.

Weighted-Average Method

A costing method that averages the costs of all units, both in progress and completed, over the period to determine the cost per unit.