Ending WIP Inventory Has 100 Units That Are 80% Complete

question 92

Multiple Choice

Ending WIP inventory has 100 units that are 80% complete for direct materials and 30% complete for conversion costs. For calculating weighted-average costs per equivalent unit, which of the following statements is true?

• A) The denominator would include 80 units for direct materials and 30 for conversion.
• B) The denominator would include 100 units for both.
• C) The denominator would include 20 units for direct materials and 70 for conversion.
• D) You cannot determine what constitutes the denominator.

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Definitions:

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of many types of data; most scores are near the average, fewer scores are found at the extremes.

Probability

The quantification of the probability of an event happening, represented as a numerical value ranging from 0 to 1.

No Skew

A term indicating that the distribution of data or residuals in a dataset exhibits no significant asymmetry from the normal distribution.

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of many types of data where most occurrences take place around the central peak.