Macadam Corp

question 82

Multiple Choice

Macadam Corp.uses the weighted average method of process costing.Its cost per equivalent unit for direct materials was $5.00 this period,and it had 25,000 equivalent units for direct materials.Beginning inventory costs were 25% of current costs.How much were current costs?

• A)$25,000
• B)$75,000
• C)$100,000
• D)$125,000

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Definitions:

Order Quantity

the amount of inventory ordered at one time to replenish stocks, often determined by balancing ordering costs and holding costs.

Vertically Integrated

A business structure where a company controls multiple stages of production within its supply chain, from raw materials to final product delivery.

Overstock Quantity

Excess inventory beyond what is normally sold, leading to surplus stock that requires additional storage or markdowns for clearance.

Optimal Quantity

The most efficient, cost-effective or beneficial amount or number of something for a specific purpose or condition.