Select the Correct Formula for Computing the Cost to Be

question 27

Multiple Choice

Select the correct formula for computing the cost to be assigned to ending inventory in a process costing system.

• A) Ending inventory equivalent units × cost per equivalent unit
• B) Ending inventory units × cost per equivalent unit
• C) Beginning inventory cost + transferred-in costs
• D) Beginning inventory units + units transferred in - units transferred out

---

Definitions:

Authorized Means

Officially approved or recognized methods or procedures for achieving a specified end.

Acceptance

In contract law, the agreement by the party receiving an offer to the terms of that offer, leading to a binding contract.

Contract

A legally binding agreement between two or more parties that outlines obligations they must fulfill.

Without Reserve

In auctions, this refers to items being sold with no minimum bidding threshold, indicating they will be sold to the highest bidder regardless of the price.