I Assume there was no beginning work in process inventory an

I. Assume there was no beginning work in process inventory and the ending werk in prosess inventory is 70% complete with respect to conversion costs. Under the weig ted average method, the mumber of equivalent units of production with respeet to conversion costs would A, the same as the units completed B. less than the units completed. C, the same as the units started during the period D. less than the units started during the period 2. A flexible budget is a budget that: A. is updated with actual costs as they occur during the period B. is updated to reflect the actual level of activity during the period. ?.is C. is prepared using a computer spreadsheet application D. contains only variable production costs.

Solution

1) Solution: less than units started during the period

Explanation: Since the inventory is 70% complete with respect to conversion cost thus the weighted average method equivalent units will be less than units started during the period

2) Solution: is updated to reflect the actual level of activity during the period

Explanation: A flexible budget is one that is allowed to adjust based on a change in the assumptions used to create the budget during management\'s planning process. Flexible budget helps to fulfill the objectives of cost control as it shows where the actual performance deviated from the planned performance