To Assign Costs to the Units in Ending WIP Inventory

question 214

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.

---

Definitions:

Contagion Theory

A social theory suggesting that ideas, attitudes, and emotions can spread through populations similarly to infectious diseases.

Gustave Le Bon

A French social psychologist best known for his work on crowd psychology and the study of the characteristics and behavior of crowds.

Type A

A personality type characterized by competitiveness, high ambition, aggressiveness, impatience, and a sense of urgency, which may be associated with stress and heart disease.

Relaxed

A state of physical or mental ease, lacking tension or anxiety.