Heathcoat Co

question 127

Multiple Choice

Heathcoat Co.uses process costing to account for the production of canned vegetables.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs.April costs were $36,000 for materials and $40,000 for conversion costs.On April 1,there were 2,000 units in beginning inventory (80% complete) .During April 10,000 units were completed.Ending in process inventory was 4,000 units (100% complete for materials,40% for conversion) .The cost per equivalent unit for conversion costs using the FIFO method would be:

• A)$4.00
• B)$4.40
• C)$1.10
• D)$8.70

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Definitions:

Private Enterprise System

An economic system where private individuals or groups, rather than the state, own and operate businesses.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on factors like location, purchase volume, or customer segment.

Fair Competition

Practices that ensure an equitable and honest competitive environment in the marketplace.

Relationship Management

The strategy and practices of maintaining and improving relationships between an organization and its clients, customers, or other key stakeholders.