Gholson, Inc

question 74

Multiple Choice

Gholson, Inc. employs a process costing system in which direct materials are added at the beginning of the process. Direct material costs from the prior period for beginning work in process are $1,250. The current period's direct material costs total $31,500. The company began the period with 500 units, 70% complete, started 10,500 units, and finished the period with 1,000 units, 40% complete.
Using a FIFO system, the direct material cost per equivalent unit is:

• A) $3.00
• B) $2.98
• C) $3.20
• D) $2.55

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variation in a set of numbers, indicating how spread out the values are.

Inverse Relationship

A type of correlation where one variable increases while the other decreases, and vice versa.

Negative Correlation

A linkage between two variables that demonstrates an inverse relationship: one rises as the other falls.

Correlational Research

A research method that examines the relationship between two or more variables to determine if they are associated.