Schiller Company Has Unit Costs of $6 for Materials and $15

question 93

Multiple Choice

Schiller Company has unit costs of $6 for materials and $15 for conversion costs.There are 4,200 units in ending Work in Process which are 25% complete as to conversion costs, and fully complete as to materials cost.How much is the total cost assignable to the ending Work in Process inventory if the FIFO method is used?

• A)$40,950
• B)$88,200
• C)$25,200
• D)$15,750

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Definitions:

Fraud in the Inducement

A deceitful practice where one party intentionally misrepresents material facts, inducing another to enter into a contract.

UCC Statute of Frauds

A legal requirement under the Uniform Commercial Code that certain contracts must be in writing to be enforceable.

Agreed-upon Terms

The specific conditions and stipulations that are formally accepted by the parties involved in a contract or agreement.

Specially Manufactured Goods

Items that are custom-made to a buyer's specifications, making them unique and not easily resaleable in the general market.