Golden Ring Company Produces Two Types of Product: Large and Larger

question 105

Multiple Choice

Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information: $\begin{array} { l }&\text { Large } & \text { Larger } \\&\text { Work Order } 10 & \text { Work Order } 11\\\text {Direct materials (actual costs) }&\$45,000&\$75,000\\\text { Applied conversion costs:}\\\text {Mixing }&?&?\\\text { Cooking } & \$ 12,000 & \$ 12,000 \\\text { Bottling } & \$ 10,000 & \$ 15,000 \\\\\text { Batch size (bottles) } & 5,000 & 5,000\end{array}$
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments.
What is Golden Ring Company's unit cost of Large?

• A)$3.50
• B)$16.90
• C)$23.90
• D)$70.00

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Definitions:

Transference Neurosis

A phenomenon in psychotherapy where patients displace onto their therapists feelings derived from previous significant relationships.

Interpersonal Psychoanalysts

Psychotherapists who focus on the interpersonal relationships of the patient, believing these relationships play a significant role in mental health.

Relational Psychoanalysis

A branch of psychoanalysis that emphasizes the importance of interpersonal relationships in the development and treatment of mental disorders.

Internal Conflicts

Psychological struggles that occur within a person, arising from competing desires, needs, or beliefs.