For the Month of June, Starlight Chocolates Had a Cost

question 2

Multiple Choice

For the month of June, Starlight Chocolates had a cost per equivalent unit of $2.50 for materials and $0.40 for conversion costs in its Mixing Department.The company began June with 12,000 pounds of chocolate in production.By the end of the month, the company had completed 180,000 pounds of chocolate, and 9,000 pounds were in process.The in-process units were 100 percent complete with respect to material and 40 percent complete with respect to labor and overhead.How much is the cost of the ending Work in Process Inventory in the Mixing Department?

• A)$23,940
• B)$26,100
• C)$22,500
• D)$10,440

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Definitions:

MR = MC Output

The output level where marginal revenue equals marginal cost, indicating the profit-maximizing level of production for a firm.

Economic Profit

The distinction in total financial gain and the entirety of expenses, involving both acknowledged and unacknowledged costs.

Total Revenue

The total amount of money generated by a business from the sale of goods or services before any expenses are deducted.

Short-Run Supply

The quantity of goods a firm is willing and able to supply to the market at different price levels in a short-term period, typically assuming some inputs are fixed.