Indicate Whether Each of the Following Statements About Process Costing

question 49

Short Answer

Indicate whether each of the following statements about process costing systems is true or false.The number of equivalent whole units can be calculated by the FIFO method or by the weighted average method.For Company X, the cost in beginning work in process was $18,000; costs incurred during the month were $52,100; the number of equivalent whole units for the month was 8,400. Company X calculates equivalent whole units by the weighted average method. The cost per equivalent whole unit was $6.20.The allocation of costs between products transferred out and those still in process at the end of the period is shown on a cost of production report.The weighted average method of calculating equivalent whole units takes into account the stage of completion of beginning work in process but not ending work in process.Many companies use the weighted average method to calculate equivalent whole units because the method is relatively easy to use.

Understand the concept of Cournot duopoly and how firms' output decisions affect market equilibrium.

Calculate equilibrium output for firms in a Cournot duopoly setting.

Analyze the effect of cost structures on firms' profitability in a Cournot duopoly.

Apply the Cournot model to various market scenarios and demand functions.

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Definitions:

City Wage Tax

A local tax imposed on individuals who work in a city, calculated as a percentage of their wages or salaries.

Proportional

Describes a relationship where changes in one variable cause changes in another variable at a constant ratio or rate.

Average Tax Rate

The ratio of total taxes paid to total income, representing the overall percentage of income that is taken by taxes.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating how much of any additional income will be taken in taxes.