The Cooking Department Uses Process Costing and Is the Third

question 46

Multiple Choice

The Cooking Department uses process costing and is the third department at Winslow Rice Production.During February, there were 8,000 units of beginning inventory in the Cooking Department, and 50,000 units were transferred in from the prior process.There were 4,000 units in ending inventory.The transferred-in cost in the beginning inventory was $80,000, with $900,200 of additional cost for units transferred in during the month.What is the cost per equivalent unit for transferred-in costs?

• A)$15.52
• B)$16.90
• C)$18.15
• D)There is not enough information to answer the question

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Definitions:

Collection Delay

The period between when a sale is made and when the payment is actually received.

Lockbox System

A service provided by banks to companies for the collection of payments from customers, enhancing the speed and security of transactions.

Money Market Securities

Short-term financial instruments, such as Treasury bills and commercial paper, offering liquidity and low risk.

Collection Time

is the average number of days it takes for a business to convert its receivables into cash, reflecting the efficiency of its credit policies and collections.