If the Costs for Direct Materials, Direct Labor, and Factory

question 122

True/False

If the costs for direct materials, direct labor, and factory overhead were $60,000, $35,000, and $25,000, respectively, for 20,000 equivalent units of production, the conversion cost per equivalent unit was $6.

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Definitions:

Cash Dividend

A payment made by a company to its shareholders, usually as a distribution of profits.

Operating Activities

Transactions and events that directly affect the financial position of a company, primarily related to its core business operations.

Comparative Balance

A financial statement that presents balances of accounts or financial metrics at different points in time for comparison.

Direct Method

A method of preparing the cash flow statement where actual cash flow information from operating activities is directly listed.