On September 30,the Sorting Department of Tea Works Had Ending

question 136

Multiple Choice

On September 30,the Sorting Department of Tea Works had ending Work-in-Process Inventory of 30,000 units that was 43% complete for materials and 35% complete for conversion costs.This means that for the beginning Work-in-Process Inventory,________% of the materials and ________% of conversion costs were added during October.

• A) 43; 35
• B) 65; 57
• C) 57; 65
• D) 35; 43

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Definitions:

Sell-through

The percentage of inventory sold to consumers compared to the amount initially delivered to retailers or distributors, indicating product demand and sales effectiveness.

Lot Sizing Decisions

Decisions made to determine the optimal order quantity that minimizes the total costs including holding, ordering, and shortage costs.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance premiums.

Quantity Discounts

Price reductions offered to buyers purchasing in large volumes, incentivizing bulk orders to decrease per unit cost.