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

question 43

Multiple Choice

An error was made by ROC 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

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Definitions:

Descriptive Statistics

Statistical methods that summarize and organize the characteristics of a set of data, using measures like mean, median, mode, and standard deviation.

Theory

A model of interconnected ideas or concepts that explains what is observed and makes predictions about future events.

Hypothesis

A specific prediction of what should be observed in a study if a theory is correct.

Clinical Psychologists

Professionals specializing in diagnosing and treating mental, emotional, and behavioral disorders through psychological techniques.