The Bowden Corporation Makes a Single Product

question 244

Multiple Choice

The Bowden Corporation makes a single product. Only one kind of direct material is used to make this product. The company uses a standard cost system. The company's cost records for June show the following data: There were no beginning inventories of direct materials.
The standard cost of direct material for one unit of output is:

• A) $2 per unit
• B) $16 per unit
• C) $8 per unit
• D) $10 per unit

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Definitions:

Heroin

An opioid drug made from morphine, a natural substance taken from the seed pod of the various opium poppy plants.

THC

Tetrahydrocannabinol, the principal psychoactive constituent of cannabis, responsible for its mind-altering effects.

Active Ingredient

The component of a drug or substance that is biologically active and responsible for its effects on the body.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes, known for its effects on mood and perception.