Byers Company Had the Following Department Information for the Month

question 13

Multiple Choice

Byers Company had the following department information for the month: $\begin{array}{lr}\text { Total materials costs } & \$ 48,000 \\\text { Equivalent units of materials } & 10,000 \\\text { Total conversion costs } & \$ 80,000 \\\text { Equivalent units of conversion costs } & 20,000\end{array}$ What is the total manufacturing cost per unit?

• A) $4.26.
• B) $4.00.
• C) $4.80.
• D) $8.80.

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Definitions:

Exemption Clause

A contractual term that limits one party's liability for breach of contract, negligence, or other unforeseen circumstances.

Extra Consideration

An additional benefit or payment required to finalize an agreement or contract, beyond the initially agreed terms.

Contract Discharge

The conclusion of a contractual obligation, either through completion of the contract terms, mutual agreement, or other legal methods.

Novation

The process of substituting a new contract or obligation for an old one, requiring the agreement of all parties involved.