Nettle CoUses Process Costing to Account for the Production of Rubber

question 126

Multiple Choice

Nettle Co.uses process costing to account for the production of rubber balls.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Equivalent units have been calculated to be 12,000 units for materials and 10,000 units for conversion costs.Beginning inventory consisted of $14,000 in materials and $8,000 in conversion costs.April costs were $72,000 for materials and $80,000 for conversion costs.Ending inventory still in process was 4,000 units (100% complete for materials,50% for conversion) .The total cost per unit using the FIFO method would be closest to:

• A)$15.9666
• B)$13.8182
• C)$14.0000
• D)$14.5000

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Definitions:

Ex-dividend Date

The specific date on which shares of a company stop coming with the right to receive the most recently declared dividend, usually set two trading days before the record date.

Record Date

The specified date on which a company determines its shareholders' eligibility to receive dividends or the right to participate in corporate actions.

First-quarter Dividend

This is a dividend payment made by a corporation to its shareholders, typically after the first quarter's earnings are calculated.

Dividend Increase

A rise in the amount of dividends paid out per share by a company to its shareholders.