Frost,IncIs a Service Firm That Uses Process Costing

question 22

Multiple Choice

Frost,Inc.is a service firm that uses process costing.The firm worked on a total of 1,600 cases this month,800 of which were completed during the period.The remaining cases were 40% complete.The firm incurred $180,000 in direct labor and manufacturing overhead costs during the period,and had $4,800 in direct labor and manufacturing costs in beginning inventory.Using the weighted average method,what was the cost per equivalent unit?

• A)$115.50
• B)$141.43
• C)$145.20
• D)$165.00

---

Definitions:

Deferred Tax Liability

A tax obligation that a company has incurred but is not yet required to pay, often arising from differences between accounting methods for financial statements and tax purposes.

Associate

A company in which another company owns a significant portion (usually between 20% and 50%) but not a majority stake, providing it with significant influence.

Equity Entries

Accounting transactions that affect the owners' equity account in a company's balance sheet, such as issuing stock or paying dividends.

Parent Entities

Companies that own more than half of the voting rights of another company or have control over it, making the other company a subsidiary.