Using a Three-Month Moving Average (With Weights of 6,3,and 1

question 23

Multiple Choice

Using a three-month moving average (with weights of 6,3,and 1 for the most current value,next most current value and oldest value,respectively) ,the forecast value for October made at the end of September in the following time series would be__________.

• A)11.60
• B)10.00
• C)9.67
• D)8.60
• E)6.11

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Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead, which are incurred to convert raw materials into finished goods.

FIFO Method

"First In, First Out," an inventory valuation method where goods first purchased or produced are sold first, affecting inventory cost and profits.

Process Costing

An accounting method used where costs are accumulated for a continuous process and then assigned to individual units of output.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, making them comparable to fully completed units.