Heathcoat Co

question 130

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 total cost per unit using the FIFO method would be closest to:

• A)$7.9833
• B)$6.9091
• C)$7.0000
• D)$7.2500

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Definitions:

Competitive Business Environments

Scenarios where businesses compete for the same customers or market share, characterized by rivalry and the need for strategic planning.

Entrepreneurship

Engaging in the process of founding businesses, assuming financial jeopardy with the anticipation of earning profits.

Entrepreneurship

Undertaking the initiative to create one or more businesses, accepting the monetary risks for the potential of making profit.

Entrepreneurs

Entrepreneurs are individuals who identify business opportunities, acquire and organize the necessary resources to capitalize on them, and bear the associated risks and rewards.