Question

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.

Answer 1

B. increase the total cost per unit

Step-by-step explanation:

Adding additional materials means increasing the total production cost, and if that situation is not increasing the number of produced units the cost per unit will be increased.

Remember:

Cost Per Unit = Total Cost of Production / Units Produced