Cinder Company Had the Following Department Information for the Month

question 30

Multiple Choice

Cinder Company had the following department information for the month: $\begin{array}{lr}\text { Total materials costs } & \$ 60,000 \\\text { Equivalent units of materials } & 10,000 \\\text { Total conversion costs } & \$ 90,000 \\\text { Equivalent units of conversion costs } & 20,000\end{array}$ How much is the total manufacturing cost per unit?

• A)$10.50.
• B)$5.00.
• C)$4.50.
• D)$6.00.

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Definitions:

Incremental Sales

Additional revenues generated from a new marketing campaign, sales strategy, or any activity beyond normal operations.

Operating Expenses

Expenses related to the day-to-day operations of a business that are not included in the cost of goods sold, such as rent, salaries, and utilities.

Capital Budgeting

The process of planning and managing a company's long-term investments in projects or assets, evaluating potential returns and risks.

Straight-Line Depreciation

A method of calculating depreciation by evenly spreading the cost of an asset minus its salvage value over its useful life.