Cinder Company Had the Following Department Information for the Month

question 27

Multiple Choice

Cinder Company had the following department information for the month: $\begin{array}{ll} \text {Total materials costs. } &\$80,000\\ \text { Equivalent units of materials } & \text { 10,000 } \\ \text { Total conversion costs } &120,000\\ \text {Equivalent units of conversion costs. } & \text {20.000 }\\\end{array}$
$\text { How much is the total manufacturing cost per unit? }$

• A)$14.00
• B)$6.67
• C)$6.00
• D)$8.00

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Definitions:

Fair Value

An estimate of the market price of an asset or liability, reflecting what a willing buyer would pay a willing seller in an arm's length transaction.

Issue Price

The price at which new shares are offered to the public or bonds are sold, determined at the time of issue.

Stock Dividends Distributable

It represents the shares that are due to shareholders as a dividend but have not yet been distributed.