An Error Was Made by Marrow Company in Computing the Percentage-Of-Completion

question 112

Multiple Choice

An error was made by Marrow Company in computing the percentage-of-completion of the current year's ending Work-in-Process Inventory. The error resulted in the assignment of a lower percentage of completion to each component of the inventory than actually was the case. There was no beginning Work-in-Process Inventory. What is the effect of this error on (1) cost assigned to cost of goods completed for the period and (2) the computation of costs per equivalent unit?

• A) Understated; Understated
• B) Understated; Overstated
• C) Overstated; Understated
• D) Overstated; Overstated

Understand different pricing strategies and their application across product life cycle stages.

Evaluate the role of price elasticity of demand in pricing strategy.

Appreciate the significance of understanding fixed and variable costs in pricing.

Analyze various pricing tactics and their impact on consumer perception and demand.

---

Definitions:

Full Accrual

Refers to an accounting method where income and expenses are recorded when they are earned or incurred, regardless of when the cash transactions occur.

PSAB

Public Sector Accounting Board, which sets accounting standards for public sector entities in Canada.

Revenue Measured

The process of determining the monetary amounts at which the revenues of a company are recognized in the financial statements.

Tax Concessions

Financial incentives or reductions in tax rates provided by governments to encourage certain business activities or investments.