Physical Units Are 40000

question 96

Multiple Choice

Physical units are 40000. Total conversion costs are $158000. There are 1000 units in ending inventory which are 50% complete as to conversion costs. How much are conversion costs per unit?

• A) $4.00.
• B) $3.95.
• C) $7.90.
• D) $3.85.

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Definitions:

Numeraire

A standard unit of account in economics used to compare the value of goods and services.

Perfect Substitutes

Goods that a consumer is completely indifferent between, meaning they will substitute one for another at a constant rate regardless of any change in price or utility.

Perfect Complements

Goods that are always used together in fixed proportions, where the utility or value of one item increases with use of the other.

Pareto Efficient

An allocation condition in resources where any attempt to favor one individual results in a disadvantage to another.