The Following Is an Account for a Production Department, Showing

question 224

Multiple Choice

The following is an account for a production department, showing its costs for one month:
Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost $41,850, what was the cost of completing the units in the beginning Work in Process inventory?

• A) $54,000.
• B) $2,160.
• C) $12,150.
• D) $37,260.
• E) $7,560.

---

Definitions:

Process Innovation

The implementation of a new or significantly improved production or delivery method.

Total Product Curve

A graph showing the relationship between the quantity of input used and the quantity of output produced.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good varies as the production volume changes.

Marginal Utility

The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.