Figure 2-1

question 11

Multiple Choice

Figure 2-1. Concam Inc.manufactures television sets.Last month direct materials (electronic components,etc.) costing $500,000 were put into production.Direct labor of $800,000 was incurred,overhead equaled $450,000,and selling and administrative costs totaled $360,000.The company manufactured 8,000 television sets during the month.Assume that there were no beginning or ending work in process balances.
Refer to Figure 2-1.The total per unit prime cost was:

• A)$263.75
• B)$62.50
• C)$162.50
• D)$156.25

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Definitions:

Small Stock Dividend

A dividend paid in the form of additional shares, typically representing less than a 25% increase in outstanding shares.

Capital In Excess

Funds received by a company from issuing shares that exceed the par value of the shares.

Debt-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, often used to assess the company's financial leverage.

Residual Dividend Policy

A strategy where dividends paid to shareholders are based on earnings left over after all operational and investment costs are covered.