Python Company Manufactures Plastic Cups in One Department

question 18

Multiple Choice

Python Company manufactures plastic cups in one department.The following information is available: The units in the ending work-in-process inventory are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.The unit cost of direct materials is ________.

• A)$1.00
• B)$3.00
• C)$4.35
• D)$5.00

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Definitions:

Accounting Policy

The unique criteria, base assumptions, conventions, statutes, and approaches employed by a business in the development and disclosure of financial statements.

Measurement Bases

The various methods or approaches for determining the value at which assets, liabilities, income, and expenses are recognized and presented in financial statements.

Materiality

The notion of materiality guides the margin of error acceptable, the degree of precision required, and the extent of the disclosure required when preparing general purpose financial statements.

Disclosure Provisions

Legal requirements or policies that necessitate the revelation of certain information to stakeholders or the public, ensuring transparency.