Use the Following to Answer Questions

question 36

Multiple Choice

Use the following to answer questions:
-(Table: Tutoring) Look at the table Tutoring. If the college requires all tutors to register with the dean and charges each tutor $10 to register and if Sigmund can charge all students their willingness to pay, his total profit from tutoring will be:

• A) $10.
• B) $20.
• C) $30.
• D) $40.

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Definitions:

Opening WIP Inventory

The value of unfinished goods that a company has at the beginning of an accounting period.

FIFO Method

FIFO Method (First In, First Out) is an inventory valuation method where goods first acquired are the first to be sold or removed, affecting stock and cost of goods sold.

Equivalent Units

A concept in cost accounting used to apportion costs to partially completed goods, calculated by taking the number of completed units plus the equivalent units in the process.

Conversion Costs

The costs incurred in the process of converting raw materials into finished goods, typically including labor and overhead.