Urban Company Manufactures a Product Through a Continuous Single-Step Process

question 30

Essay

Urban Company manufactures a product through a continuous single-step process. All materials are added at the beginning of processing. Production and cost data for the company for February 2011 are as follows: Production data:
$\begin{array}{ll}\text { In process, beginning of month ( } 20 \% \text { converted) } & 1,000 \text { units } \\\text { Started during February } & 5,000 \text { units } \\\text { Completed and trans ferred to finished goods } & 4,500 \text { units } \\\text { In process, end of month ( } 60 \% \text { converted) } & 1,500 \text { units }\end{array}$
Manufacturing costs:
$\begin{array}{lr}\text { Work in progress, beginning } & £ 14,730 \\\text { Materials } & £ 45,000 \\\text { Direct labour cost } & £ 102,960 \\\text { Factory overhead cost } & £ 51,480\end{array}$

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Definitions:

Response Tendencies

The habitual patterns or tendencies of an individual to react in a particular way to stimuli.

Specificity Theory

A theory suggesting that specific receptors in the body are responsible for specific sensations like pain.

Sensory Qualities

Sensory Qualities pertain to characteristics of objects or experiences as perceived by the senses, including taste, smell, touch, sight, and hearing.

Neurons

Nerve cells that are the basic building blocks of the nervous system, responsible for receiving sensory input from the external world, processing and transmitting information through electrical and chemical signals.