In the Assembly Department, All the Direct Materials Are Added

question 41

Multiple Choice

In the Assembly Department, all the direct materials are added at the beginning of processing.Beginning Work in Process Inventory consists of 2,000 units with a direct materials cost of $31,860.During the period, 15,000 units are started and direct materials costing $250,000 are charged to the department.If there are 1,000 units in ending inventory, what is the cost per equivalent unit for materials during the period, assuming the company uses a process costing system?

• A)$15.93
• B)$15.63
• C)$14.83
• D)$16.58

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Definitions:

General and Administrative Costs

Expenses related to the day-to-day operations of a business that are not directly linked to production or sales.

Gross Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold; it measures how efficiently a company uses its labor and supplies in production.

Cost of Goods Sold

Refers to the immediate expenses related to manufacturing products that a business sells.

General and Administrative Costs

Expenses related to the overall administration and management of a business, excluding production and sales costs.