Suppose That a Company Adds Material at the Beginning of Production

question 38

Multiple Choice

Suppose that a company adds material at the beginning of production and that conversion costs are incurred evenly throughout production. In May, the beginning work in process inventory was 20% complete and the ending work in process inventory was 30% complete. Under the weighted average method, the number of equivalent units of production for direct materials for May is equal to the number of units

• A) Started in May plus the number of units in beginning inventory for May
• B) Started and completed in May plus 30% times the number of units in ending inventory for May
• C) Started and completed in May plus 20% times the number of units in beginning inventory plus 30% times the number of units in ending inventory for May
• D) Started and completed in May plus 80% times the number of units in beginning inventory plus 30% times the number of units in ending inventory for May

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Definitions:

Implementation and Diffusion

The process by which new ideas, practices, or technologies are put into use and spread across various sectors or communities.

Innovation Process

The sequence of activities involved in the development and implementation of new ideas, products, or services.

Identifying Advantages

The process of recognizing or discovering favorable factors, benefits, or conditions that give an individual or organization a competitive edge.

Disadvantages

Drawbacks or obstacles that reduce effectiveness or hinder progress.