Ending WIP Inventory Has 100 Units That Are 70% Complete

question 151

Multiple Choice

Ending WIP inventory has 100 units that are 70% complete for direct materials and 20% complete for conversion costs. For calculating costs per equivalent unit, which of the following statements is true?

• A)The denominator would include 100 units for both.
• B)The denominator would include 70 units for direct materials and 20 for conversion.
• C)The denominator would include 20 units for direct materials and 80 for conversion.
• D)You cannot determine what constitutes the denominator.

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Definitions:

Immanent Justice

The belief, often held by children, that moral infractions are always punished spontaneously by a natural force or intrinsic mechanism.

Moral Realism

The judgment of acts as moral when they conform to authority or to the rules of the game.

Divergent Thinking

Free and fluent association to the elements of a problem.

Seriation

Involves the ability to arrange objects in order by size, shape, or any other characteristic, marking an essential skill in cognitive development.