Everett Company's Inventory at December 31, and the Costs Charged

question 71

Essay

Everett Company's inventory at December 31, and the costs charged to Work in Process-Department B during December are as follows:
During December, all direct materials are transferred from Department A, the units in process at December 1 were completed.Of the 10,000 units entering the department, all were completed except 1,200 units which were 25% completed as to conversion costs.Inventories are costed by the first-in, first-out method.

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Definitions:

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Relatively Inelastic

Describes a situation where the demand or supply for a good or service changes only slightly in response to changes in price.

Price Elastic

Refers to a situation where the demand or supply for a product or service significantly changes in response to its price change.

Soft Drinks

Non-alcoholic beverages that are usually carbonated and contain various flavorings and sweeteners.