Which of the Following Formulas Is Used to Calculate the Cost

question 65

Multiple Choice

Which of the following formulas is used to calculate the cost per equivalent unit of production (EUP) for direct materials? The weighted-average method is used.

• A) Cost per EUP for direct materials = Total conversion costs / Equivalent units of production for direct materials
• B) Cost per EUP for direct materials = Total direct materials costs / Equivalent units of production for direct materials
• C) Cost per EUP for direct materials = Total transferred in costs / Equivalent units for transferred in
• D) Cost per EUP for direct materials = Total direct materials costs / Equivalent units of production for conversion costs

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Definitions:

Increasing

describes a situation or process where there is a growth or addition in quantity, size, number, or extent.

Negative Slope

A line or curve on a graph that descends from left to right, indicating an inverse relationship between two variables.

Vertical Line

In geometry, a straight line that runs up and down the page, perpendicular to the horizon.

Slope

is a measure of the steepness or inclination of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.