Match Each of the Following Events Considered Independently to Its

question 60

Multiple Choice

Match each of the following events considered independently to its likely effect on WillCo's various apportionment factors. WillCo is based in Q and has customers in Q, R, and S. To this point, WillCo has not established nexus with S. More than one choice may be correct.
-Q adopts a sales-only apportionment formula.

• A)No change in apportionment factors
• B)Q apportionment factor increases
• C)Q apportionment factor decreases
• D)R apportionment factor increases
• E)R apportionment factor decreases
• F)S apportionment factor increases
• G)S apportionment factor decreases

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Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead involved in transforming raw materials into finished goods.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases less cost of goods sold.

Conversion Costs

are the costs required to convert raw materials into finished goods, comprising direct labor and manufacturing overhead.

Weighted-Average Method

An inventory costing method that calculates the cost of ending inventory and the cost of goods sold based on the weighted average cost of all items available for sale.