Materials are added to a second production department and will not increase the number of units produced in this department. Adding materials to the second department will
A)decrease total ending work in process.
B)change the amount of factory overhead included in the ending work in process.
C)increase total unit cost.
D)not change the dollar amount transferred out of the department.

Question

Quizplus · Accepted Answer

Adding materials to the second production department increases the costs associated with producing the units, thereby increasing the total unit cost, even though the number of units produced remains unchanged.

Materials Are Added to a Second Production Department and Will