A P-Chart Tracks the Proportion of Defectives, and a C-Chart

question 93

True/False

A p-chart tracks the proportion of defectives, and a c-chart tracks the number of defects in a piece.

Master the calculation of equivalent units of production for both conversion costs and material costs using the weighted average and FIFO methods.

Learn to compute per-unit costs for both conversion and direct materials.

Understand the preparation and analysis of a cost of production report for a manufacturing process.

Comprehend the steps in calculating a predetermined factory overhead rate and its application to production departments.

---

Definitions:

LIFO Method

An inventory valuation method where the last items produced or bought are the first ones to be expensed, leading to lower reported profits and taxes when prices are rising.

Periodic System

An accounting system where updates to inventory levels and costs of goods sold are made at the end of an accounting period rather than being tracked continuously.

Ending Inventory

The total value of all inventory, including products that are partially or fully completed, that is still on hand at the end of an accounting period.

Net Realizable Value

The estimated selling price of an asset in the ordinary course of business, minus any costs associated with its sale or disposal.