Charley Company's Assembly Department Has Materials Cost at $2 Per

question 79

Multiple Choice

Charley Company's Assembly Department has materials cost at $2 per unit and conversion cost at $4 per unit. There are 20000 units in ending work in process all of which are 70% complete as to conversion costs and 100% complete as to materials. How much are total costs to be assigned to inventory?

• A) $56000.
• B) $96000.
• C) $84000.
• D) $120000.

Understand the concept and impact of eliminating unprofitable segments on net income and fixed expenses.

Comprehend the definitions and applications of cost of capital, hurdle rate, and minimum rate of return.

Analyze the significance and calculation of net present value in investment decisions.

Determine how depreciation affects annual cash inflow calculations.

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Definitions:

Above-ground

Pertains to structures, systems, or cables located on or above the surface of the earth, as opposed to being buried underground.

Below-ground

Positioned or located beneath the surface of the ground.

Dissipation

Loss of energy, especially the conversion of electrical energy into heat in a circuit due to resistance.

Voltage Divider

A circuit that generally is constructed by connecting resistors in series to produce desired voltage drops across the resistors.