Chen Corporation, a New Company, Adds Material at the Beginning

question 27

Multiple Choice

Chen Corporation, a new company, adds material at the beginning of its production process; conversion costs, in contrast, are incurred evenly throughout the manufacturing process. During May, the firm completed 15,000 units and had ending work in process of 2,000 units, 60% complete. Equivalent-unit costs were: materials, $15; conversion, $22. The cost of Chen's completed production is:

• A)$225,000.
• B)$330,000.
• C)$333,000.
• D)$555,000.
• E)$629,000.

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Definitions:

Ascending-series Principle

A principle or method involving sequence or order that progresses from lower to higher, often used in contexts such as music, mathematics, and psychology.

Preoperational Stage

A stage in Jean Piaget's theory of cognitive development, occurring approximately between the ages of 2 and 7, characterized by symbolic thinking and egocentrism but a lack of operational logic.

Decenter

In Piaget’s terminology, to think simultaneously about several aspects of a situation.

Piaget

Jean Piaget, a Swiss psychologist renowned for his work in child development and his theory of cognitive stages.