-The Above Table Gives Data for the Nation of Mojo

question 2

Multiple Choice

-The above table gives data for the nation of Mojo.At what level of real GDP is the unplanned inventory change equal to $1.75 trillion?

• A)$6.0 trillion
• B)$0.0 trillion
• C)$12.0 trillion
• D)$3.0 trillion
• E)$9.0 trillion

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Definitions:

FIFO Method

A cost flow assumption for inventory valuation where the first items acquired (First In) are the first sold or used (First Out), affecting the cost of goods sold and inventory on financial statements.

Process Costing

A costing method used in manufacturing where costs are assigned to products based on the processes or stages they go through.

Equivalent Units

A technique used in process costing that converts partially completed goods into a number of fully completed units.

Conversion Costs

The sum of direct labor and manufacturing overhead costs, representing the expenses incurred to convert raw materials into finished products.