Information from the Records of the Conundrum Company for September

question 111

Multiple Choice

Information from the records of the Conundrum Company for September 2018 was as follows: $\begin{array} { l r } \text { Sales } & \$ 307,500 \\ \text { Selling and administrative expenses } & 52,500 \\ \text { Direct materials used } & 66,000 \\ \text { Direct labor } & 75,000 \\ \text { Variable factory overhead } & 50,000 \\ \text { Factory overhead } & 51,250 \end{array}$

Inventories
$\begin{array}{lcc}&\text { Sept. 1,2018}&\text { Sept 30,2018 }\\\hline\text { Direct materials } & \$ 8,000 & \$ 10,500 \\\text { Work in process } & 18,750 & 21,000 \\\text { Finished goods } & 17,250 & 14,250\end{array}$
Conundrum Corporation produced 20,000 units.
What are the conversion costs per unit?

• A)$7.05
• B)$8.8125
• C)$12.1125
• D)$14.7375

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Definitions:

Simultaneous Move Game

A type of game theory scenario where all participants choose their actions without knowledge of the others' decisions at the same time.

Nash Equilibrium

A concept in game theory where no player can benefit by changing their strategy while the other players keep theirs unchanged.

High Price

A cost that is considered to be at the upper end of the price range for a product or service.

Low Price

An amount charged for a product or service that is relatively lower than the average or general market level, often aimed at attracting customers or gaining market share.