Additional materials are added in the second department of a four-department production process. However, this addition does not increase the number of units being produced in the second department, but will:
A) increase the equivalent units of production.
B) increase the total cost per unit.
C) decrease the value of the transferred-in costs.
D) decrease the total costs to account for.

Question

Quizplus · Accepted Answer

Adding materials increases the total costs in the second department, which raises the total cost per unit, even if the number of units remains the same.

Additional Materials Are Added in the Second Department of a Four-Department