Ending WIP Inventory Has 100 Units That Are 80% Complete

question 160

Multiple Choice

Ending WIP inventory has 100 units that are 80% complete for direct materials and 30% complete for conversion costs.For calculating weighted-average costs per equivalent unit,which of the following statements is true?

• A)The denominator would include 80 units for direct materials and 30 for conversion.
• B)The denominator would include 100 units for both.
• C)The denominator would include 30 units for direct materials and 70 for conversion.
• D)You cannot determine what constitutes the denominator.

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Definitions:

Private Goods

Goods that are excludable and rival in consumption, meaning one person's consumption prevents others from enjoying it.

Common Resource

A resource like air or water that is available to all but susceptible to overuse and depletion because it is not excludable.

Negative Externalities

These are unintended and adverse effects of a product or economic activity that impact third parties who are not directly involved in the activity.

National Parks

Areas of natural beauty, historical significance or ecological importance, protected by the government for public enjoyment and preservation.