To Assign Costs to the Units in Ending WIP Inventory

question 266

True/False

To assign costs to the units in ending WIP Inventory, the company multiplies the cost per equivalent unit by the number of equivalent units for direct materials and conversion costs separately, and then sums the two amounts.

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Definitions:

Physical Causation

A concept in law and philosophy that denotes the actual cause-and-effect relationship between actions or events.

Remoteness Test

Determining whether the damages were too far removed from the original negligent act; a breaching party is only responsible for reasonably expected losses.

Misfeasance

Wrongful conduct.

Nonfeasance

Failure to act; such failure is actionable in tort only where there is a specific duty to act, as with a guardian, parent, or lifeguard.